Expert: New US-EU trade agreement will lead to increased global trade costs and impact trade order.

Professor Wan Zhe from Beijing Normal University, an expert in economics, stated that the global economy will be significantly and profoundly impacted. Firstly, the costs of global trade will increase as the costs of goods in the chain will rise, affecting the speed of global economic growth. This agreement effectively undermines the non-discrimination principle of the WTO, which may lead to a return to a jungle era of global trade, further weakening the authority and effectiveness of the WTO in global trade governance, exacerbating the fragmentation of global trade rules, and potentially affecting the stability and resilience of global supply chains. The agreement restricts transit trade through measures such as rules of origin certification and standardization mechanisms, aiming to build exclusive trade groups that force many countries and economies to take sides, ultimately changing the layout and flow of global supply chains and making them more unstable.