World Trade Organisation director general Pascal Lamy said trade disputes between China and the USA were inevitable considering the growing trade between the two economic giants.
However, he indicated the WTO was well aware of the potential for explosive trade disputes that could affect global commerce and assured the world that “there is no risk of slipping into a trade war” as it was well-equipped to handle the conflict.
Lamy likened the increasing tension to the USA’s stoushes with Japan in the 1980s and conflict between the USA and Europe throughout their recent trading history.
“The question is not whether there is friction, the question is whether it is handled the right way,” Lamy said pragmatically.
