WTO director: The US-China currency battle will cause China and other countries to resort to traditional protectionism
The continuing fight over currency values, especially between the U.S. and China, has become the new, significant obstacle to free trade, said Pascal Lamy, director general of the World Trade Organization.
The risk, he said in an interview with The Wall Street Journal, was that the U.S.-China currency battle would cause other countries "to resort to traditional trade tools" such as tariff increases and licensing requirements. Mr. Lamy noted that currencies are the domain of the International Monetary Fund. "The important thing is to keep the markets open."