What is a Trade War?
Trade war isn’t the conventional physical war between nation’s as you maybe thinking, but this is rather fighting for the dominance over the global market. This in simple words means, knocking out other countries trade business’s, by imposing certain kind of restrictions in form of levying the taxes in huge amount. This could be the high rate of import duty taxes in the imported goods or services, which could cripple down the other countries exports. This trade war is currently in the news, as everyone’s eyes has focused on the United States of America, following it’s protectionism policy, as the president Donald Trump came into power.
Speculations’ of Trade War
United States of America has been the super power since the cold war era. The dominance over the world trade was maintained by US. The active trade disputes is largely between the USA and China, but recently spilled over the Latin American and some very close ally’s of USA in the European Union. But in recent decades China has immensely growing as the worlds fastest economy and is on the verge of replacing US as the number one in ranking.
The American economy is being damaging due to the Chinese growing influence all over the world via it’s unlikely trade practice’s. The expansionist policy of China in the South China Sea and rapidly growing unfair trades has urged USA to forced trade restrictions on certain types of Chinese goods exported to US. This in return, about to some extent back fired upon US, where Chinese have also added trade restrictions upon US. This growing trade disputes outbreak upon other Latin American countries like Brazil being heavily levied tax in chunk’s for aluminum exports to USA.
World Trade Organization (WTO)
The World Trade Organization is an independent body which regulates the trade flows across the globe and sets the rules and regulations through legal channels which are abide to all countries But every nation has it’s foreign trade policy and right to trade freely on global market. The recent reports by WTO says to avoid the on going trade disputes and further to stop the future escalation on global scale, right decision should be taken to resolve the issues mutually, since trade war is currently hot bed for certain countries currently. The protectionism policy by major world leaders is not good for free and fair the global market.
In the future, this might give a way to recession, which isn’t good as trade war keeps looming over. So overall to see, the trade disputes is neither going to help anyone of the countries, as it is better to resolve the issues mutually and beneficial to all in peaceful manner.
