Protectionism is not the solution to the war on trade: Leslie Maasdorp

“I am a trade specialist myself. I don’t think a trade war would benefit anyone,” said Leslie Maasdorp, the vice president of the New Development Bank which was established by the BRICS states
He was commenting on predictions that a trade war would result from the decision of US President DonaldTrump to impose tariffs on up to 60 billion US dollars of imports from China and place restrictions on Chinese investments in the United States.

Analysts say the move could be a direct challenge to the WTO (World Trade Organization) and even create obstacles to the established rules-based international trade order.

Maasdorp believes Trump’s latest move is fundamentally incompatible with the  WTO. He noted that China has called on WTO members to unite and prevent the United States from “wrecking” the organization with tariff actions.

Maasdorp insisted that the international community is still the safeguard of the international trade system. “There is no question that globalization and trade opening has benefited the world,” he said. “The world is better off today with a global trading system that is based on rules.”

Maasdorp emphasized that economies should solve grievances through negotiation within the established multilateral framework. “A trade war would not benefit anyone – not China or the US. It would not benefit any of the large economies,” he said.

“Because the multilateral system has been established after the World War Two, the World Trade Organization emerged. So I think that is an appropriate forum to negotiate and define the new rules of the game.”

Protectionism is not the solution to the war on trade: Leslie Maasdorp

I am a trade specialist myself. I dont think a trade war would benefit anyone, said Leslie Maasdorp, the vice president of the New Development Bank which was established by the BRICS states He was commenting on predictions that a trade war would result from the decision of US President DonaldTrump to impose tariffs on up to 60 billion US dollars of imports from China and place restrictions on Chinese investments in the United States. Analysts say the move could be a direct challenge to the WTO (World Trade Organization) and even create obstacles to the established rules-based international trade order. Maasdorp believes Trumps latest move is fundamentally incompatible with the WTO. He noted that China has called on WTO members to unite and prevent the United States from wrecking the organization with tariff actions. Maasdorp insisted that the international community is still the safeguard of the international trade system. There is no question that globalization and trade opening has benefited the world, he said. The world is better off today with a global trading system that is based on rules. Maasdorp emphasized that economies should solve grievances through negotiation within the established multilateral framework. A trade war would not benefit anyone not China or the US. It would not benefit any of the large economies, he said. Because the multilateral system has been established after the World War Two, the World Trade Organization emerged. So I think that is an appropriate forum to negotiate and define the new rules of the game.