ZCZC
BCN-08
US-CHINA-TRADE-WTO-DISPUTE
Trump threatens not to recognize China’s special status at WTO
WASHINGTON, July 27, 2019 (BSS/AFP) – President Donald Trump on Friday
threatened to withdraw recognition of the special “developing nation” status
of China and other relatively rich countries at the World Trade Organization
unless changes are made to the body’s rules.
The salvo fell the week before top US trade officials are due to return to
China to rekindle trade talks that acrimoniously collapsed in May.
Trump said in a statement the global trade body uses “an outdated
dichotomy between developed and developing countries that has allowed some
WTO members to gain unfair advantages.”
Without “substantial progress” to reform WTO rules within 90 days,
Washington will no longer treat as a developing country any WTO member
“improperly declaring itself a developing country and inappropriately seeking
the benefit of flexibilities in WTO rules and negotiations,” the statement
said.
While the statement points to multiple countries that benefit from the
designation, it focuses mostly on China.
“The WTO is BROKEN when the world’s RICHEST countries claim to be
developing countries to avoid WTO rules and get special treatment. NO more!!!
Today I directed the U.S. Trade Representative to take action so that
countries stop CHEATING the system at the expense of the USA!,” Trump said on
Twitter.
The statement notes that seven of the 10 wealthiest economies in the world
claim developing country status, as do Mexico, South Korea, and Turkey, which
are members of the Group of 20 leading economies.
Trump’s order directs the US Trade Representative’s office to “use all
available means to secure changes at the WTO,” with the cooperation of other
countries where possible.
It is unclear how the measure would change US policy but it likely would
open the door to even more retaliatory tariffs against China and other
countries.
– ‘Cannot go unchecked’ –
“When the wealthiest economies claim developing country status, they harm
not only other developed economies but also economies that truly require
special and differential treatment,” the statement said, and that “cannot
continue to go unchecked.”
Developing country status in the WTO allows governments longer timelines
for implementing free trade commitments, as well as the ability to protect
some domestic industry and maintain subsidies.
The Trump administration has long complained that WTO rules are unfair to
the United States, and has nearly throttled key WTO proceedings by refusing
to name new members of the appellate body for the dispute settlement system.
In fact, the United States has won the majority of complaints it has file
with the WTO.
And other governments, including the European Union, share concerns about
China’s status in the WTO, refusing to recognize China as a market economy by
the end of 2016.
The Trump administration also has rolled out new complaints against China
using domestic trade rules almost weekly, covering a host of goods as varied
as steel, industrial chemicals and rubber bands, imposing tariffs of 200
percent and more.
BSS/AFP/HR/0925