US self-interest crippling WTO and global trade
Print Edition
THE United States came under fire from China and the European Union yesterday, accused by both major trading partners of taking protectionist measures and bringing the World Trade Organization to its knees.
Japan, Switzerland and Canada also criticized Washington, but US trade ambassador Dennis Shea vowed to lead reform efforts at the watchdog.
Chinese envoy Zhang Xiangchen said the US was not honoring its obligations as the world’s largest economy.
“A top dog should act like a top dog,” Zhang said. “It cannot only see a narrow spectrum of its own self-interest, and it certainly should not do whatever it wishes, sacrificing of others.”
Zhang said US tariffs on steel and aluminium products had allowed protectionism under the guise of dubious national security concerns.
EU ambassador Mark Vanheukelen added: “The multilateral trading system is in a deep crisis and the United States is at its epicenter.”
The heated words were exchanged at a review of US trade policies, held every two years.
To force reform at the WTO, US President Donald Trump’s team has refused to allow new judicial appointments to the Appellate Body, the world’s top trade court, a process which requires consensus among member states.
Shea expressed concern about a wayward WTO dispute settlement system and said the Appellate Body had overreached in some legal interpretations.
Zhang countered that by blocking the selection of judges, Washington was putting the system into paralysis.
Vanheukelen urged Washington to engage in talks on reform proposals which it presented last month with 11 other members.
Vanheukelen and Canada’s envoy Stephan de Boer decried limitations on the US procurement market, in particular through “Buy American” legislation.
Japan and Switzerland also expressed concern at the US use of a national security exemption to justify its steel and aluminium tariffs.
On the US Section 301 investigation, Zhang said the US measures vastly increased tariffs, “bringing back to life the ghost of unilateralism that has been dormant for decades.”
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