BRICS bloc calls for WTO rules to be followed
U.S. tariffs a global cause for concern
JOHANNESBURG • Brazil, Russia, India, China and South Africa want a rulesbased multilateral trade system as embodied by the World Trade Organization to be central to global commerce as the BRICS Block’s biggest member faces billions of dollars of additional tariffs from the U.S.
“We recognize that the multilateral trading system is facing unprecedented challenges,” the BRICS nations said Thursday in a declaration drawn up at their 10th annual summit held in Johannesburg.
“We call on all WTO members to abide by WTO rules and honour their commitments.”
Escalating trade tensions are threatening to derail a global upswing that’s already losing momentum amid weaker-than-expected economic growth in Europe and Japan as financial markets seem complacent to the mounting risks, the International Monetary Fund warned July 16.
The U.S. and China clashed at a WTO meeting Thursday, with Washington demanding reforms to make the Asian nation’s economy more responsive to market forces.
The office of the U.S. Trade Representative is preparing levies on an additional $200 billion of Chinese goods and President Donald Trump said he is “ready to go” with tariffs on as much as $500 billion, roughly the value of all China’s annual exports to the U.S. The two countries last month launched their initial salvos by imposing duties on $34 billion of each other’s imports.
Trump said this month that the WTO treats the U.S. unfairly, responding to questions about reports he’s considered withdrawing the U.S. from the organization. The American government wins most of the cases it initiates with the body.
Earlier at the summit, Chinese President Xi Jinping called on BRICS nations to reject protectionism “outright” and promote trade and investment liberalization. There are no winners in a trade war, he said.
“We must work together at the UN, Group of 20 and World Trade Organization to safeguard a rule-based multilateral trading regime,” Xi said, adding disputes should be resolved through dialogue.
Strengthening trade and investment ties with BRICS nations “is one of the priorities,” Russian President Vladimir Putin said at the same event.
In Washington meanwhile, many congressional Republicans worried about jobs for constituents back home remained skeptical of President Donald Trump’s trade policies on Thursday, a day after Trump struck a surprise deal with the EU to halt further tariffs and hold talks on opening markets.
The Republican lawmakers, who face voters in congressional elections this autumn, spelled out their anxieties in a meeting at the U.S. Capitol with Trump’s trade adviser, Peter Navarro, and his economic chief, Larry Kudlow.
“Let me tell you, that was a vociferous bunch in there, and I was not the only one,” Representative Andy Barr of Kentucky told reporters after the closed-door gathering. Barr said he had sought to find out from Navarro and Kudlow what the impact of Wednesday’s deal would be on Kentucky’s bourbon industry.
Last month, the European Union imposed tariffs on bourbon, American motorcycles, orange juice and other products in response to the steel and aluminum tariffs imposed by the Trump administration this year.
Barr said he emphasized to Navarro and Kudlow that 17,500 jobs in Kentucky were connected with the bourbon industry and “these jobs are not less important than the jobs (associated) with the aluminum and steel.”
Trump’s pursuit of aggressive measures against U.S. trading partners from China to Europe and Canada has put him at odds with the Republican free-trade orthodoxy of recent years.
WE MUST WORK TOGETHER AT THE UN AND GROUP OF 20 …