WTO not prepared for China: US
CHINA’S economic system is not compatible with the norms of the WTO, the Trump administration has said, asserting that the international trade body is not equipped to deal with Beijing and its industrial policies.
The Trump administration is also seeking to redefine the term ‘developing nations’ as countries like China, despite being the world’s second largest economy, are being considered as developing, that gives them certain benefits under the World Trade Organization (WTO).
“Too many countries at the WTO self-designate as develop- ing countries. And as a developing country at the WTO, you enjoy additional flexibilities and exemptions from the rules,” Dennis Shea, Deputy US Trade Representative and US Ambassador to the WTO, told a Washington audience on Friday.
“If you look at who some of these countries are, though, it’s pretty amazing that they’re claiming to be developing countries at the WTO,” he said.
For example, 10 of the G-20 members claim developing country status at the WTO.
China, which is the second largest economy in the world, claims developing country status at the WTO, Shea said.
Five of the six countries with the largest GDP per capita claim developing country status at the WTO, he said during his appearance before the Center for Strategic and International Studies, a top American think-tank.
US Trade Representative Bob Lighthizer, Shea said, raised that issue at the ministerial conference in Buenos Aries in December and has a real conversation going on at the WTO about whether there should be more differentiation among developing countries.
In July, he said, the US offered a paper on China’s economic model and the point of the paper was the economic model is essentially inconstant with the WTO norms.