Re: WTO out the Window?
Originally Posted by
Bruce
->
WTO replaced GATT as I understand it and it protects trade against unfair tariffs, subsidies, cartel behaviour and dumping.
How would you feel if your biggest trading partner the EU decided on a, say, 25% tariff on the import of British goods after Brexit over that imposed on any other non member nation? What would be the remedy without the WTO?
China might have annoyed Trump but they are treated as a 'developing' nation under WTO rules and China didn't break any rules. Whether they should continue being treated as a developing nation is a moot point but they are not breaking WTO rules otherwise America would have the ability to take them before the WTO tribunal.
Eh ???
China has repeatedly breached international patents and copyrights and international property rights on US (and other countries) products (look at how they managed to get their satellites and space exploration up and running so quickly - it wasn't because they are great innovators is it ???). China is also one of the biggest polluters in the world and has serious human and animal rights violations, but still a huge economy ranking the 2nd biggest in the world). It got there by stealing other countries ideas and patents, treating its workers like shit and violating the WTO and climate regulations.
Since China joined the WTO (a big big mistake), they have consistently violated WTO rules by dumping steel in the USA and illegal restrictions on imports (among loads of other violations just look them up).
So ... since China joined the WTO it has done nothing but violate the WTO rules all members seem to (except the EU) follow, while the WTO pretty much turned a blind eye to China doing whatever it damn well likes. Thats why Trump is up in arms, why should the USA abide by the rules when China can steal its intellectual property rights, violate the WTO rules and the WTO does nothing about it, time and time again.
So Trump, quite rightly has stuck one on the WTO until they tow the line by telling them he will quit the Appellate body of the WTO rendering its disputes facilitation defunct ... its the Appellate body of the WTO that has not dealt with disputes fairly at all - and ignored a lot of them as far as the USA is concerned (and other countries).
So now we have China and USA trying to come to a deal outside the WTO because the WTO and its rules don't work bilaterally (as far as China is concerned) and has been quite frankly utterly useless.
Then we get to the EU and the USA where trump has stuck 10-25% tarrifs on EU imports. This is because of the illegal state subsidies of Airbus (under WTO rules) by Germany and France, making Boeing uncompetitive against the state subsidised Airbus planes. Just today, Airbus now overtake Boeing in the number of 737 vs A320 planes sold in the world. Totally unfair ....
I know the USA also state-subsidise certain manufacturing areas in the US but its nowhere near the eye watering level we see by China and the EU. So quite rightly, Trump has said, everyone plays fair or he will put America first and deal with the trade violators and the WTO Appellate body himself - and its working. Next will be tarrifs on EU cars into the USA to level the playing field.
Good on him I say, the only problem for the UK is we are still part of the EU trading tarrifs - not because we have done anything wrong but because we are still members of the shower of shit we voted to leave 3.5 years ago.
P.S.
When we leave the EU we will be the biggest single market for trade for the 27. We are its biggest export market while we are a member and are the least integrated with its single market.
I just thought I would add that. Because I felt like it...