President Donald Trump has threatened to withdraw the US from the World Trade Organization (WTO), claiming it treats his country unfairly.
“If they don’t shape up, I would withdraw from the WTO,”
US President Donald Trump threatened in an interview with Bloomberg News on Thursday, August 30, to withdraw from the World Trade Organisation (WTO) if “they don’t shape up,”.
Trump VS the WTO
Mr Trump said on Thursday that the 1994 agreement to establish the WTO “was the single worst trade deal ever made”.
Trump has stated numerous times that the United States is treated unfairly in global trade and has consistently blamed the WTO for allowing that to happen. He has also warned he could take action against the global body, although he has not specified what form that could take.
He claimed on Fox News earlier this year that the WTO was set up “to benefit everybody but us”, adding: “We lose the lawsuits, almost all of the lawsuits in the WTO.” However, analysis has shown that the US wins about 90% when it is the complainant and loses about the same percentage when it is complained against.
US Trade Representative Robert Lighthizer has also accused the WTO of interfering with US sovereignty. It comes as President Trump set a Friday deadline for Canada to sign a new agreement with the US and Mexico. He has threatened to tax the country’s automotive sector or cut it out entirely.
Washington has recently blocked the appointment of new judges to the WTO’s Geneva-based dispute settlement body, which could potentially paralyse its ability to issue judgments.
Bernd Lange, chair of the European Parliament’s trade committee, told Politico magazine that it would submit plans to overhaul the organisation in September. He said it would test whether the US was really interested in reform.