Countries and their world leaders need to cooperate to leave aside their differences instead of opting for instigative measures that could harm global growth, an expert at international trade said.
“The system is not perfect, but (having) no system is worse; chaos is worse and this is what we are facing today,” said Arancha Gonzalez, executive director of the International Trade Center. “It’s not between China and the U.S. Everyone needs China and everybody needs the U.S. It’s between order and chaos. ”
Gonzalez requested the other nations to cooperate to work in a collision and overcome the challenges faced due to the current economic conditions. This happened at a conference in the International Finance Corporation in Tokyo.
The International Trade Center is a joint venture between the World Trade Organization and the United Nations, which supports the internationalization of small- and medium-sized enterprises.
“In chaos, everybody is going to find it very difficult to promote growth and create jobs,” said Gonzalez.
“What we are seeing is an erosion of basic principles on which our economy is based — international cooperation, open markets, rules of the game, transparency, and predictability,” she said.
Instead of moving away from multilateralism, Gonzalez said, there needs to be greater integration to navigate the digital economy.
She said that both countries were looking at the trade dispute “from a very national point of view,” adding that they were “forgetting that the economic underpinnings of the digital economy is cross border, forgetting that what drives companies today … is their ability to move not just goods, but also data, people that go with it, investment,” she said.
“So all of this requires a regulatory framework and it has to be a global regulatory framework,” said Gonzalez.