A Colombo-based think tank Verité Research has called on the Sri Lankan government and the international community to pursue a multilateral response to the recent tariff hike imposed by the United States, warning that failure to do so could further undermine the rules-based global trade system.
In a statement, Verité Research said the U.S. tariff hike — linked to trade deficits — represents a “severe break” from the rules-based order established under the World Trade Organization (WTO), whose 166 member countries account for 98% of global trade.
“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,” the statement said.
The think tank cautioned that while many countries are now seeking bilateral negotiations with the United States to reduce the impact of the tariffs on their own economies, this approach risks exacerbating the breakdown of the global trade framework.
Instead, Verité Research urged governments — including Sri Lanka’s — to join forces under the WTO framework to establish a “Cooperative Common Response” to the U.S. action.
Such a multilateral approach, the organization argued, would help protect the stability and predictability of global trade rules and prevent further erosion of the existing international order.
Verité Research’s call comes amid rising concerns globally over the escalating use of unilateral trade measures and their potential to fragment the international trading system. (Newswire)