World leaders have convened in emergency talks after trade disputes between the United States, China and the European Union escalated to a point that economists warn could trigger a global economic contraction.
The flash point is a new framework proposed by Washington that would impose tariffs of up to 45 percent on goods from countries with alleged unfair subsidisation practices.
The World Trade Organisation has convened a special dispute panel and issued a preliminary assessment suggesting the proposed tariffs violate multiple multilateral trade commitments.
Financial markets responded nervously, with global equity indices falling between three and seven percent in the week following the announcement.
