Lagarde urges governments to respect global trade rules

European Central Bank President Christine Lagarde said the world risks a new “geopolitical divide” and urged governments to respect international trade rules.

Repeated failures can hurt the global economy, Lagarde told Croatian state TV HRT1. 

  • “We have rules that are the WTO rules and if all countries could respect the rules and resist tweaks and turns and violations here and exceptions there and subsidies here, it would all be much better for the world economy. I’m concerned that we are seeing more and more violations of the rules”
  • We’re seeing “a geopolitical divide between some of the developed countries led by the United States and some emerging market economies, in particular China. That is a transformation of the trading landscape that we have known, with all consequences that go with a fragmentation of trade”