US-China trade war caused ‘dramatic spike’ in trade barriers, WTO warns ahead of G20 summit
- October 2018 to May 2019 saw second largest spike in trade barriers on record, with 20 new restrictions between the G20 covering trade worth US$335.9 billion
- G20 leaders will meet in Osaka, Japan this week, including an expected meeting between Chinese President Xi Jinping and US counterpart Donald Trump
Global trade tensions, largely stemming from the ongoing US-China trade war, have led to a “dramatic spike” in barriers to doing business between the G20 nations, according to a new report by the World Trade Organisation.
The World Trade Organisation (WTO) calculated that between October 16, 2018 and May 15, 2019, there were 20 new restrictions introduced between the world’s most powerful economies, covering trade worth US$335.9 billion.
This was the second largest spike on record, behind only the preceding period when US$480 billion worth of trade was affected by new protectionist measures. This means that since the trade war first started in earnest in July 2018, US$815.9 billion worth of trade has been affected by such measures.
The WTO has been tracking and quantifying “import restrictive measures” since May 2012, and the latest figure is 3.5 times higher than the initial average.
We urgently need to see leadership from the G20 to ease trade tensions and follow through on their commitment to trade and to the rules-based international trading system
As the G20 leaders prepare to convene in Osaka, Japan for their annual summit this weekend, the WTO’s director general Roberto Azevêdo said the findings “should be of serious concern for the whole international community”, adding that “we urgently need to see leadership from the G20 to ease trade tensions and follow through on their commitment to trade and to the rules-based international trading system”.