A high-octane trade dispute between the world's two
largest economies -- the US and China -- will harm global trade this year as it
would give rise to protectionism . According to the
Economist Intelligence Unit (EIU) report, while global trade will be
overshadowed by the ongoing dispute between China and the US, appetite for new
free-trade deals will continue in the rest of the world including those
involving India. protectionism will rise, but that a trade war will be
averted, means that global trade growth will continue to slow in 2019-22, to an
average of 3.5 per cent a year . As per the World Trade Organisation (WTO), the global trade growth recorded
in 2017 stood at 4.7 per cent and is estimated at about 4.4 per cent for
2018. The Trump administration's proposal would see tariffs of an
additional 25 per cent on USD 50 billion of imports from China, covering goods
that are related to the Made in China 2025 initiative such as machinery and
electrical equipment.
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