Saturday, 17 November, 2018

USA should throw China out of the WTO: Peter Morici

Trump Is Reportedly Planning to Replace the WTO With the FART Act USA should throw China out of the WTO: Peter Morici
Nellie Chapman | 05 July, 2018, 15:05

Before taking any such action the president would have to consult with the Senate Finance and House Ways and Means committees, publish a notice in the Federal Register, and seek advice from trade advisory committees.

Donald Trump's administration is prepared to abandon numerous "fundamental World Trade Organization rules" that are now in place, according to a leaked document obtained by Axios.

A leaked early draft of the United States Fair and Reciprocal Act, reportedly ordered by Donald Trump, details how the USA plans to abandon fundamental World Trade Organisation (WTO) rules.

Those principles include the prohibition of nations setting different tariff rates for countries outside of free trade agreements and the established tariff ceilings that WTO countries have agreed to.

Axios reported that it had received a leaked early draft of a bill ordered by the president, that would see America take the unlikely step of abandoning WTO rules, allowing Trump to raise tariffs without the consent of Congress.

The same source added that for now Trump's aides have managed to "push back" against the idea of the United States leaving the WTO by ensuring that the country actually "does well" in the organization.

It would also allow "reciprocal tariffs", so Mr Trump could impose U.S. tariffs on particular goods equal to the tariff charged on USA exports of those goods by another country. The Axios report says most of the Trump officials who worked up the proposal think it's unrealistic, and that has led to speculation that staffers gave it the unfortunate acronym on goal, notes Business Insider.

A White House spokeswoman told Axios that the bill was only a draft.

According to Axios, Trump was briefed on the bill in May, but it hasn't yet been reviewed by key economic advisers.

"They have to treat us fairly", Trump said Friday about the WTO.

EU President Donald Tusk said Europe must be prepared for "worst-case scenarios" in global commerce, echoing an alarm he sounded before a European summit last week.

US officials in Geneva, home of the WTO, did not immediately respond to a request for comment on Monday.

From the National Association of Farm Broadcasting News Service.