US blasts WTO special treatment of rich nations
Trump threatens to not recognize developing country status of wealthy states
US 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 (WTO) unless changes were 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.
“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 US Trade Representative to take action so that countries stop CHEATING the system at the expense of the USA!” Trump said on Twitter.
In a memoto Robert Lighthizer, the US trade representative, Trump said the global trade body used “an outdated dichotomy between developed and developing countries that has allowed some WTOmembers to gain unfair advantages.” Without “substantial progress” to reform WTO rules within 90 days, Washington would no longer treat as a developing country any WTO member “improperly declaring itself a developing country and inappropriately seeking the benefit of flexibilities in WTOrules and negotiations,” the statement said.
It was another unilateral attack on the multilateral trade body, which was created to settle disputes and prevent all-out trade wars, but which Trump has repeatedly criticized since taking office.
Trump’s order directs Lighthizer’s office to “use all available means to secure changes at the WTO,” with the cooperation of other countries where possible.
Lighthizer applauded the move.
“This unfairness disadvantages Americans who play by the rules, undermines negotiations at the WTO and creates an unlevel playing field,” he said in a statement.
While Trump’s statement points to multiple countries that benefit from the developing nation designation, it focused mostly on China.
The statement noted that seven of the 10 wealthiest economies in the world claimed developing country status, as do Mexico, South Korea and Turkey, which are members of the Group of 20 leading economies.
It is unclear how the measure would change US policy in practice, though it likely could open the door to even more retaliatory tariffs against Beijing.