US WTO Exit Would Mean Trade War ‘Like We Haven’t Seen Since the 1930s’ – PhD

• US WTO Exit Would Mean Trade War ‘Like We Haven’t Seen Since the 1930s’ – PhD
  by https://sputniknews.com/
  The US is mulling abandoning rules outlined by the World Trade Organization with a bill dubbed the ‘Fair and Reciprocal Tariff Act’. If passed, the bill would give the president authority to raise tariffs without Congressional approval. Speaking to Sputnik, economics professor Pushan Dutt offered some surprising insight on US dependence on trade.
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  Sputnik: What chances does the Trump administration have with this initiative? How likely is Congress to approve it?
  Pushan Dutt:I think this is the most serious play seen so far. It started as a threat to impose tariffs, then it led to a trade skirmish, and if the Trump administration starts withdrawing from the WTO it would be a full-blown trade war the likes of which we have not seen since the 1930s.
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  This would lead to tremendous uncertainty in the global economy. All countries would be affected; it’s a massive lose-lose situation. The thing which has been holding things together when Trump has been negotiating NAFTA or engaged in the dispute with China and the European Union is that the WTO’s rules have been regarded as sacrosanct. If they are no longer sacrosanct, all bets are off.
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