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Full-blown trade war would cost jobs, growth and stability - WTO

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Reuters

BERLIN - A full-blown trade war would have serious effects on global economic growth and there would be no winners of such a scenario, the director-general of the World Trade Organization (WTO), Roberto Azevedo, said on Tuesday.Speaking at a Berlin industry event against the backdrop of growing trade tensions between China and the United States, Azevedo said: &quot;The warning lights are flashing. A continued escalation of tensions would pose an increased threat to stability, to jobs and to the kind of growth that we are seeing today.&quot;A full-blown global trade war with a breakdown in international trade cooperation would reduce global trade growth by around 70 percent and GDP growth by 1.9 percent, Azevedo said.&quot;There would be no winners from such a scenario and every region would be affected,&quot; Azevedo said. The European Union itself would have about 1.7 percent taken off its GDP growth, he said, adding: &quot;Clearly, we cannot let this happen.&quot;Azevedo pointed to several reform proposals that addressed trade-distorting practices and the WTO&#x27;s existing mechanisms to resolve trade disputes, adding that members had to agree on which reforms they wanted to focus on.&quot;Clearly, this informed debate is gaining significant momentum and that is positive,&quot; Azevedo said, adding the G20 summit in Buenos Aires in November would be crucial to agree on the next steps to safeguard the rules-based free trade order.&quot;Of course, the system can be better, in fact it must be better. But it&#x27;s nonetheless vital. So while we work to improve it and ensure that it&#x27;s more responsible to evolving economic needs, we must also preserve what we have - and I count on your support to that end,&quot; he said. (Reporting by Michael Nienaber, editing by Riham Alkousaa)

A full-blown trade war would have serious effects on global economic growth and there would be no winners of such a scenario, the director-general of the World Trade Organization (WTO), Roberto Azevedo, said on Tuesday.

A full-blown trade war would have serious effects on global economic growth and there would be no winners of such a scenario, the director-general of the World Trade Organization (WTO), Roberto Azevedo, said on Tuesday.