ICC warns against further proliferation of unilateral trade measures

ICC Secretary General John W.H. Denton AO said:

“We are deeply concerned that recent tariff escalations on steel, aluminium and electric vehicles risk fuelling a tit-for-tat cycle of unilateral trade interventions that could ultimately cause significant harm to the global economy. We urge governments to consider the systemic risks posed by an entirely foreseeable surge in trade restrictive measures across a range of sectors and calibrate their response to domestic industrial and political challenges accordingly.”

“In this context, it is crucial that all countries adhere to the letter and spirit of existing World Trade Organization rules – both in the introduction of trade barriers and in the response to any new measures imposed by trading partners. The imperative to work through the WTO to resolve economic frictions has never been so apparent if we are to avoid a damaging race to the bottom on trade.”

“We fully appreciate that concerns around domestic subsidies are a key driver of recent tariff hikes by a number of major economies. From our perspective, the real answer to this challenge lies in governments finally reaching a global consensus on acceptable subsidy regimes – including those that can help accelerate the green transition as we face up to the existential threat of climate change. Simply put, this is the only way to ensure a fair, stable, and predictable trading environment for all – and, moreover, one that is truly capable of delivering a net-zero future.”