China has just called for a debate at the WTO about “trade instability” and this organization should react.
The proposal is made in the context of US President Donald Trump decided to apply 10% additional tax for all imports from China. Beijing responded by imposing retaliation and filing a lawsuit against the US to the World Trade Organization (WTO).
Theo Reuterssome delegates at the organization said that China’s call for debate was not an attack on Washington, but an effort to show the world’s second largest economy to comply with the WTO’s rules.
This is a stance that helps this country attract support in current global trade talks. “China wants to show itself as a country with reason and responsibility, like the best student in the class,” a commentary commented.
WTO logo at headquarters in Geneva, Switzerland, October 5, 2022. Image: Reuters
This week, the WTO General Council organized a first discussion about increasing trade tensions. The Chinese delegation will have a speech expressing “deep concern” about unilateral protection measures, but not only the national name. At the same time, calling for members to deal with.
The participants said that they did not expect immediately from the meeting, but the reactions of countries could show the risk of trade war with the measures that the US intended to apply.
Earlier, WTO General Director Ngozi Okonjo-iweal called for 166 members to restrain retaliation to avoid a “catastrophic” trade war.
WTO established in 1995, the result of the Uruguaya negotiations lasted from 1986 to 1994. This is the largest trade negotiation round in history, attracting 123 countries, in order to liberate global trade and decrease. Tariff barriers.
The tension between the two largest economies in the WTO has existed for a long time before Mr. Trump took power. Beijing accused Washington violating rules, while the United States thought that China was not worthy of the “developing country”, which helped them receive special treatment according to WTO rules.
Since taking office in the second term, Mr. Trump has announced a plan to withdraw or reduce the US involvement in many international organizations, except for the WTO. However, the US trade representative is about to be appointed Jamieson Greer to call it “an organization with many defects”.