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History full of bilateral trade wars, not global ones: SBI
Mumbai, May 11 (IANS) Referring to the US-China trade dispute, the State Bank of India (SBI) on Friday said that such bilateral trade wars have never turned into full-scale global ones, while they provide am opportunity to countries like India to expand their trade.
In March, US President Donald Trump slapped import tariffs of 25 per cent on steel and 10 per cent on aluminium, unfolding the prospect of an all-out global trade war. China retaliated in April by imposing tariffs as high as 25 per cent on 128 American products.
In its latest Ecowrap research report authored by Chief Economist Soumya Kanti Ghosh, the state-run lender said that the “world history is riddled with instances of prolonged trade wars”.
“Empirical evidence suggests that none of the trade wars which started bilaterally turn into a full-fledged multilateral trade wars, though the trade wars were prolonged for close to a decade in some cases,” it said.
“Such trade wars may not necessarily have any impact regarding financial stability and markets eventually recovered in all cases of trade wars. In fact, during the 1993-2001 prolonged trade dispute between the US and EU, the US markets kept on rising.
“The (US) dollar has also started appreciating against the basket of six major currencies now that fears of full-fledged trade war between the US and China have dissipated.”
“During the periods of trade dispute between France, Germany and the US in 1962, global trade continued to increase. Thus, a conclusion stating one-on-one relationship between trade wars and the world GDP growth will be too simplistic,” it added.
Ecowrap pointed out that besides tariffs, America is also resorting to non-tariff barriers.
“Over the years, it can be seen that non-tariff measures have risen considerably. Such non-tariff barriers are more a manifestation of protectionist measures,” Ghosh said.
Noting that the ongoing US-China dispute has not affected Indian stock markets, the report said it provides opportunities for other countries to expand their trade “and keep the momentum going.”
“Interestingly, if the relationship between US and China leads to some reduction in
US exports to China and India capitalises on it by even trying to capture one per cent of the total Chinese imports from the US, we can see an additional 10 per cent increase in India’s exports to China,” the report said.
Union Commerce Minister Suresh Prabhu has said that in the face of such protectionist threats to global trade, India is making efforts to strengthen both the multilateral trading system as well its bilateral trade relations.
India has sought an exemption from the US tariffs along the lines of what has been allowed to the European Union, Argentina, Australia, Brazil, Canada, Mexico and South Korea.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.