Trump threatens to withdraw USA from World Trade Organization

Louis Albin an artist in Phoenix and Navy veteran displays his custom-made T-shirt as he waited in line for the public viewing of the late Sen. John Mc Cain Wednesday Aug. 29 2018 outside the Arizona Capitol. The shirt which features an image of a

Louis Albin an artist in Phoenix and Navy veteran displays his custom-made T-shirt as he waited in line for the public viewing of the late Sen. John Mc Cain Wednesday Aug. 29 2018 outside the Arizona Capitol. The shirt which features an image of a

The world appeared yesterday to be one step closer to a full-scale trade war after President Trump threatened to withdraw the United States from the World Trade Organisation.

While the POTUS does not shy away from hyperbole, especially in his protectionist trade rhetoric, his threats were taken seriously by Roberto Azevedo, the WTO's director general, who suggested in an interview with Bloomberg that the economy would descend into chaos, if the US was to withdraw from the organization.

Trump has already disrupted global trade by imposing tariffs on partners like the European Union, Mexico, Canada, and China, and pulling the USA out of the WTO could cause further uncertainty.

The EU's pledge to import more soybeans from US farmers was the "dealmaker" in the agreement between European Commission President Jean-Claude Juncker and US President Donald Trump to stop the dispute and open trade talks, EU sources told EURACTIV. He added that if the body "does not shape up, I could withdraw from the WTO".

If the USA withdraws from WTO, it would upset the global trade system set up decades ago and was supported by the US.

Trump has been sounding off about the unfair trade since even before he became president.

Astronaut Robb Kulin quits Nasa halfway through training
Kulin will formally leave NASA on Friday, becoming the first astronaut-in-training to leave that position in the past 50 years. He studied in California and graduated with a doctorate in engineering from the University of California-San Diego in 2010.

US Trade Representative Robert Lighthizer has said allowing China into the WTO in 2001 was a mistake.

Washington has accused the WTO of infringing on United States sovereignty as some decisions have gone against the country.

In the Oval Office interview, Trump said at the WTO "we rarely won a lawsuit except for previous year". "The US concerns about areas in the WTO that they would like to improve are not new".

The U.S. on Monday told the WTO that it plans to block the reappointment of one of the its four remaining judges, a move that would significantly hinder the organization's ability to function.

Why is Trump mad at the WTO?

It also works to help resolve global trade disputes. "But the WTO is in for a very large shock if it actually has to agree a new set of rules". It is the forum for sorting disputes between countries about breaches of global trade rules and it is the forum for negotiating new trade liberalisation.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.