Verite Research calls for united response for US tariff

Colombo based think-tank Verite Research called on the Sri Lankan government, and the world, to forge a multilateral approach in tacking the recently announced US tariff.

At present, countries are lining up to negotiate bilaterally with the United States on exceptional arrangements, to mitigate the individual country impact of the unilateral action. 

"That is, for as many countries as possible to come together under the aegis of the WTO and forge a ‘Cooperative Common Response’, instead of defecting to act bilaterally and exacerbate the rupture to the existing rules-based order on trade in the world," Verite Research said in a statement. 

The trade deficit related tariff hike by the United States creates a severe break from the rules-based global order on trade established through the World Trade Organisation (WTO), with the membership of 166 countries covering 98% of trade, the think-tank pointed out. 

A rules-based order, as it exists at present, even with its many weaknesses, fosters stability, and makes all countries better-off than the alternative of a free-for-all, Verite Research added.