WTO Report Warns Against Rising Trade Protectionism

The World Trade Organization's 2024 report highlights how import tariffs disproportionally impact low-income households, women, and small businesses amidst growing global protectionism. It emphasizes that open trade reduces poverty, contrary to popular belief that it increases inequality. The report warns that protectionist policies could lead to higher domestic prices, reduced consumption, and retaliatory trade measures.

The World Trade Organization (WTO) has issued a stark warning against rising protectionist policies, stating that import tariffs tend to disproportionately burden low-income households. This assertion was highlighted in the WTO's 2024 report, which counters the prevailing notion that global trade exacerbates inequality.

WTO Director-General Ngozi Okonjo-Iweala noted that restrictive trade measures often impact women and smaller companies more severely. The report underscores that higher tariffs typically lead to increased domestic prices, which hurt low-income consumers more.

Highlighting recent global trends, the report discusses the United States' plans to hike tariffs on Chinese imports, along with similar measures by Canada and the European Union. It further points out that retaliatory actions by countries like China could escalate tensions and harm global trade dynamics.

(With inputs from agencies.)