China and the U.S. seem to have reached a truce in their trade tension while the world are pursuing follow-up negotiations between the two largest economies. Tatiana Prazeres, a Senior Fellow at the University of International Business and Economics, said the trade dispute hurts not only products but also services sector.

Prazeres is a former Brazilian Foreign Trade secretary and also a member of the WEF Young Global Leaders. Among the Summer Davos 2019 by WEF, she commented the tariffs influence all economies from products to services. Taking the vehicle industry, for example, she said 30 percent of the industry is services including engineering, design and market.

“Service is invisible,” she said. Huawei ban, for instance, the company had to stop services to the U.S. cooperative corporations which lead to hurt the U.S. economy as well. Prazeres also referred to tourism, education in America.

Both sides reached a consensus remain a long way to go. “It is not an easy task, it may take time,” Prazeres said, adding that only five of over 300 people at a session during the Summer Davos 2019 believed trade tension could be solved in this year, “this problem may stay with us for a while.”

The world still has lots of uncertainties, Prazeres said what we do now is restoring confidence against trade tension and building a more stable trading system works for every country. Within the backdrop of Globalization 4.0 progress along with lots of unbalances in the world, the international system needs technologies inclusiveness, to flourish, to benefit developing countries.

“We see, for example here [at Summer Davos 2019], a lot of discussions about Artificial Intelligence, Internet of Things, Block Chain and so on. So what kind of global governance keen, we want to see all of these technologies really to translating to more trade, more job opportunities, and more growth worldwide,” she added.

As a former senior adviser to the director-general of the World Trade Organization, Prazeres also emphasized we need to reform WTO, to modernize WTO, and to make it stronger.

“I think WTO need to be more flexible and more nimble,” she said.

“We need better rules to deal with issues of Globalization 4.0, so E-commerce is one of the issues, another very important issue is investment facilitation. Just talk about investment, and how important investment is to foster development, to create opportunities and all of that. So what kind of global rules we want to see in the investment area to facilitate more investment, this is another issue that has been discussed at WTO.”

Prazeres refined the WTO first things first is facilitating trade deals. While she still optimistic about the prospects of global development.

“I think my view may see some turbulence for the seeable future, but I am confident as well,” She said, adding that China and the U.S. will find ways to deal with that and not as disruptive to the global economy and both economies.