WTO Chief Raises Alarm Over Potential Global Impact of U.S.-China Trade War

The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has expressed concern over the intensifying trade dispute between the United States and China, warning that it could lead to a drastic reduction in goods trade between the two nations—potentially as high as 80 percent. Such a decline would pose a significant threat to the global economy.

Okonjo-Iweala noted that both economic powerhouses currently contribute a combined three percent to total global trade. A breakdown in trade relations at that scale could trigger a ripple effect, undermining economic stability worldwide.

She emphasized the need for the global community to prioritize cooperation and defend the integrity of the international trading system. The WTO, as a multilateral platform, offers a space for nations to resolve trade issues constructively and prevent the escalation of conflicts that could harm the broader global economy.

The WTO also reiterated the importance of maintaining a rules-based trade framework, urging member nations to work together to prevent destabilizing disruptions and protect global trade flows.