The World Trade Organization (WTO) announced on Tuesday that it will hold informal consultations with member delegations to assess the current economic situation and its impact on the multilateral trading system. The move comes amid escalating global trade tensions sparked by recent tariff announcements.
According to a WTO official, General Council Chair Ambassador Saqer Abdullah Almoqbel of Saudi Arabia aims to engage interested delegations in discussions over the next week. These talks will explore how WTO members can navigate the latest developments in global trade. While specific members involved were not disclosed, the consultations signify a collective effort to address widespread concerns.
The United States’ recent announcement of “reciprocal tariffs” has stirred tensions worldwide. Global markets have reacted negatively, and backlash from other countries has intensified. Economists and investors have voiced criticism, warning of potential economic repercussions.
Former U.S. Treasury Secretary Lawrence Summers warned that the United States is likely heading toward a recession due to the ongoing tariff increases. In an interview with Bloomberg Television’s Wall Street Week, Summers predicted that the economic downturn could result in an additional two million Americans losing their jobs.
“It’s more likely than not that we’re going to have a recession—and in the context of a recession, we’ll see an extra two million people be unemployed,” Summers said. “We’ll see losses in household income of $5,000 per family or more.”
Summers, a Harvard University professor, compared the current tariff plans to those of 1930 that exacerbated the Great Depression. He advised that it would be prudent to reconsider the announced policies.
Despite these warnings, the White House indicated on Tuesday that the tariff policies will proceed as planned. The administration’s stance has added to the urgency for international dialogue on trade practices and regulations.
The WTO’s upcoming consultations reflect a critical step in addressing the challenges posed by rising protectionism and ensuring stability in the global economy.
