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Trump threatens to pull US out of World Trade Organization | Trump threatens to pull US out of World Trade Organization |
(about 1 hour later) | |
President Donald Trump has threatened to withdraw the US from the World Trade Organization (WTO) if the body fails to change the way it treats America. | President Donald Trump has threatened to withdraw the US from the World Trade Organization (WTO) if the body fails to change the way it treats America. |
"If they don't shape up, I would withdraw from the WTO," Mr Trump said in an interview with Bloomberg News. | "If they don't shape up, I would withdraw from the WTO," Mr Trump said in an interview with Bloomberg News. |
The WTO was established to provide rules for global trade and resolve disputes between countries. | The WTO was established to provide rules for global trade and resolve disputes between countries. |
But Mr Trump, who has been pushing protectionist policies, says the US is treated unfairly by the body. | But Mr Trump, who has been pushing protectionist policies, says the US is treated unfairly by the body. |
His warning about a possible US pull-out from the organisation highlights the conflict between the president's trade policies and the open trade system that the WTO oversees. | His warning about a possible US pull-out from the organisation highlights the conflict between the president's trade policies and the open trade system that the WTO oversees. |
Meanwhile, Washington has recently been blocking the election of new judges to the WTO's dispute settlement system, which could potentially paralyse its ability to issue judgments. | Meanwhile, Washington has recently been blocking the election of new judges to the WTO's dispute settlement system, which could potentially paralyse its ability to issue judgments. |
US Trade Representative Robert Lighthizer has also accused the WTO of interfering with US sovereignty. | US Trade Representative Robert Lighthizer has also accused the WTO of interfering with US sovereignty. |
Mr Trump has been sounding off about unfair trade since even before he became president. | Mr Trump has been sounding off about unfair trade since even before he became president. |
Last year, Mr Trump told Fox News: "The WTO was set up to benefit everybody but us… We lose the lawsuits, almost all of the lawsuits in the WTO." | Last year, Mr Trump told Fox News: "The WTO was set up to benefit everybody but us… We lose the lawsuits, almost all of the lawsuits in the WTO." |
The US has been embroiled in a tit-for-tat trade battle on several fronts in recent months. | The US has been embroiled in a tit-for-tat trade battle on several fronts in recent months. |
The one creating the most interest is the one with China, as the world's two largest economies wrangle for global influence. | The one creating the most interest is the one with China, as the world's two largest economies wrangle for global influence. |
Mr Trump has introduced tariffs on a number of goods imported into the US. | Mr Trump has introduced tariffs on a number of goods imported into the US. |
A third round of tariffs on $200bn (£154bn) of Chinese goods could come as soon as a public-comment period concludes next week, according to a Bloomberg report citing various sources. | |
Asked to confirm this during the Bloomberg interview, President Trump said that it was "not totally wrong". | |
China has responded to US tariffs by imposing retaliatory taxes on the same value of US products and has filed complaints against the tariffs at the WTO. | |
China's commerce ministry has said it "clearly suspects" the US of violating WTO rules. | China's commerce ministry has said it "clearly suspects" the US of violating WTO rules. |
An initial complaint at the WTO was filed by China in July after Mr Trump imposed his first round of tariffs. | An initial complaint at the WTO was filed by China in July after Mr Trump imposed his first round of tariffs. |
The WTO, which was set up in 1994, is at the heart of the system of rules for international trade. | The WTO, which was set up in 1994, is at the heart of the system of rules for international trade. |
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. | 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. |