China said on Wednesday that trade negotiations with the United States were an important step towards reducing the gaps, but what is really needed is the “indispensable” multilateralism to find a way out of the global trade turmoil.
“While bilateral negotiations can sometimes work, China believes that multilateralism is the inevitable and ultimate choice to address global challenges,” China’s mission to the World Trade Organization said in a statement at a WTO General Council meeting in Geneva.
“We need to find a way out,” he added.
Trade truce between China and the US
U.S. President Donald Trump announced a series of tit-for-tat tariffs in April that hit China and dozens of other countries. They came ahead of May 12 talks between the trading partners aimed at easing tensions over trade imbalances.
China and the United States have announced a trade truce, with the US reducing extra tariffs imposed on China from 145% to 30%, while China reduced its duties from 125% to 10%.
Calls for stability and reforms in the WTO
At the WTO council session on Wednesday, China called on member states to stabilize trade relations and anchor trade measures in line with WTO rules.
“Unilateral tariffs and the threat of ‘reciprocal tariffs’ are like adding fuel to the fire, which is simply wrong. An open, stable and rules-based international economic and trade order serves the common interests of all,” China said.
The US has called on members to address what it says are flaws in trade relations, which it says have caused huge trade deficits. It has also called for urgent reform of the WTO system.
“The multilateral trading system, as currently constructed, has not been able to address the serious challenges the system faces,” a U.S. statement said. The statement added that WTO members had failed to address serious trade imbalances and certain policies it described as contrary to WTO principles.
Forty-seven members supported a communiqué requested by Singapore and Switzerland at the meeting. The document reaffirms these countries’ commitment to supporting the multilateral trading system. This support is based on clear rules agreed upon by members.
Source: Olivia Le Poidevin | Notícias Agrícolas
