The WTO blames the U.S. for breaching global trading rules, Reuters reports on Tuesday. Trump responds that multi-billion dollar tariffs were justified, as China was stealing intellectual property and forcing U.S. companies to transfer technology.
- WTO’s three-member panel stated that the tariffs are put above the maximum rates that were agreed by the United States.
- China’s Commerce Ministry said that Beijing complied with the rules and rulings of WTO and favored the multilateral trading system, and hoped Washington would do the same.
- Tuesday’s ruling of WTO is likely to get an appeal from the U.S., and it will put the case into the legal void.
- WTO is more likely to approve the retaliatory measures of China if the legal process is upheld.
- Trump blamed WTO for being biased to be in favor of China.
During the two-year trade war, Trump threatened Beijing by putting tariffs on almost all Chinese imports, valued more than $500 billion even before the two countries signed the “Phase 1” Trade deal in January.
Trump suggested that Beijing was buying record amounts of U.S. corn, beef, and soybeans, and Chinese leaders knew that he was “extremely unhappy” about this handling of the coronavirus pandemic. U.S. might quit WTO, has already quit UNESCO, and plans to leave WHO as well.