Free trade is actually a solution, not the problem, says economist Arvind Panagariya

Former NITI Aayog vice chairman and economist, Arvind Panagariya, on Monday said free trade is actually a solution and not the problem.

In an exclusive interview to CNBC-TV18’s Shereen Bhan, Panagariya said globally there has been enormous progress in global free trade post the second World War.

"The current trade wars between the US and China is a bit worrisome as many actions taken by both the countries and also on the side by European Union, Mexico, Canada are inconsistent with World Trade Organization (WTO) rules,” Panagariya said, adding that unless the order gets restored, the multilateral trading system does face serious challenges.

Panagariya said, "For the while, we are going to be in the situation where we would see some weakening of the WTO."