Why can no one win a trade war? WTO warns tariffs and trade blocs could hurt everyone
Distilled Policy Brief
- A WTO report warns that global fragmentation into geopolitical blocs could reduce global GDP by 5.1% and exports by 18.6% by 2050, with severe scenarios potentially causing a 6.9% GDP decline.
- The international trading system faces its most serious disruption in 80 years, driven by rising protectionism, industrial policies, and a decline in WTO most-favoured-nation tariff trade from 80% in 2022 to 72%.
🎯 Prelims High-Yield Examination Points
WTO most-favoured-nation (MFN) principle; impact of trade fragmentation on global GDP projections; WTO ministerial meeting locations and reform challenges.
⚖️ Mains Analytical & Syllabus Linkages
The erosion of multilateralism and the rise of protectionist industrial policies; implications of trade wars for developing economies and global supply chain stability.
🎯 UPSC Prelims Practice Drill
With reference to the bilateral research and industrial cooperation engagements between India and Germany, consider the following statements: 1. Roundtables held with German research organizations, such as the Fraunhofer Institutes, prioritized key fields including microelectronics, power electronics, and smart manufacturing. 2. Expanding industry-academia innovation networks and collaboration in battery technologies form key components of the enhanced strategic cooperation. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Both statements are correct. High-level roundtables with German research institutes, including Fraunhofer Institutes, focused on microelectronics, power electronics, smart manufacturing, battery technologies, and logistics. Furthermore, the engagement emphasized strengthening industry-academia innovation networks, science and technology cooperation, and advanced manufacturing capabilities between India and Germany.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.