World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala stated that bilateral tariff agreements between the US and other countries could undermine the fundamental principle of trade equality. He announced this in an interview with the Financial Times.
According to Okonjo-Iweala, despite the recent escalation of the tariff war between the US and China, world trade is "in crisis."
"We told the WTO members conducting these bilateral negotiations to aim for maximum compliance with WTO rules," said Ngozi Okonjo-Iweala.
The WTO Director-General added that, despite recent tensions, 74% of world trade is still conducted on the basis of MFN ("most beloved nation" - "most comfortable country status").
According to the MFN concept, countries should offer the same tariff rates to all countries, unless they are reduced by a bilateral trade agreement that includes "almost all trade" - this is not a pact between Great Britain and the USA.
For information, on May 8 of this year, US President Donald Trump announced the upcoming trade agreement with Great Britain.
According to the Financial Times, the agreement will affect the low quotas for British car and steel exports.
The deal will be one of 17 agreements that the authorities intend to conclude with trading partners after the introduction of the increased tariffs on April 2.
