In an impassioned speech in October，International Monetary Fund Managing Director Christine Lagarde called for a de-escalation of trade tensions and reform of the global trade system. In her speech entitled "New Economic Landscape，New Multilateralism" she told the annual meeting of the IMF and the World Bank that trade cooperation has driven unprecedented growth and prosperity over the last 70-plus years，but today it faces a backlash. She estimated that an escalation of current trade tensions could reduce global GDP by almost one percent over the next two years. Reform of the global trade system should be aimed at making it even better，fairer，and stronger for all nations and all people. "That means fixing the system，together，not tearing it apart," she concluded.

At the same meeting，the IMF released its latest World Economic Outlook report which projects that global growth will be 3.7% in 2018 and 2019，0.2 percentage point lower than the April forecast for both years. Mechanisms for multilateral global policy cooperation，notably trade，are under strain and in need of strengthening. Amid the trade uncertainties，financial conditions are tightening. Rising trade tensions and policy uncertainties are leading to heightened concerns about global economic prospects. These factors could convince firms to postpone or forgo capital spending. That in turn could slow the expansion of investment and demand and weaken growth in trade and industrial output. Escalating trade tensions and a potential shift away from a multilateral，rules-based trading system are key threats to the global outlook. This could "dent business and financial market sentiment，trigger financial market volatility，and slow investment and trade," the IMF said. An increase in trade barriers would also disrupt global supply chains. Recent data from the IMF have shown signs of slowing global trade，manufacturing and investment.

Rules-based global governance structures are facing unprecedented challenges. It is not an exaggeration to say that the global trading system is in danger of entering a "Warring States" era. In order to maintain and expand the benefits of trade integration over the next few decades，countries must cooperate to resolve differences as much as possible without increasing distortionary trade barriers. Otherwise，the bitter fruit of declining global productivity and welfare will be tasted by all.

Fixing the Multilateral Trade System