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WTO: A Global Trade Regulator or A Secret Weapon for Rich Countries?

OMC

It was revealed on September 14th by the French Press Agency (AFP) that, China has lodged a complaint against US excessive tariffs on Chinese tyres at the World Trade Organisation.

According to Washington, these tariffs aim at preserving American companies and they would be spread over three years: 35 percent in the first year, 30 percent in the second and 25 percent in the third.

In a statement issued by the Chinese commerce ministry, Beijing describes these measures as protective and as a clear violation of WTO rules, undermining the early recovery of the world economy.

Without surprise, at least from my side, and as usual, the WTO issued a statement giving Beijing and Washington 60 days to hold bilateral consultations on the issue. If it is not resolved at the end of the period, the WTO will rule on the issue.

Obviously, the issue would not be resolved after the 60 days and the WTO litigation committee would appoint, naturally, a special group to rule on the issue. As usual, sanctions would be taken against USA, and as usual the USA would ignore them.

Can anybody tell me what happened to the WTO sanctions against Europeans and Americans over cotton subsidies? What about the sanctions against Europeans for abusive tariffs on Chinese textile?

It seems to me that, the WTO with its philosophy of globalisation such as free trade amongst member states, reduction/annulation of tariffs in developing countries to help these last integrate into the global trade etc. It seems to me that, the WTO is only there to help rich countries evacuate their products “free of tariffs” to developing countries (never the other way around), and to give hope to developing countries that, one day they would be part of the world trade if they keep on following the so called free trade. Well done!!!

So, is this the regulation of the world trade?

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September 20, 2009 - Posted by | Articles In English, International Trade | , , , , , ,

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