- July 2, 2018
- No Comment
- 126
Did Trump plan withdrawal from WTO by imposing its own Tariffs?
The Axios has collected some leaked documents indicating that a new bill has drafted by the U.S President Donald Trump and destroying the rules of WTO (World Trade Organization). It would allow Trump to increase U.S tariffs according to his will. The new bill named as the United States Fair and Reciprocal Tariff Act. The outlet has indicated that it would disregard two fundamental rules of WTO, so Trump will be able to impose tariffs without the approval of the U.S Congress. The bill is prevention on nations applying tariff rates for different countries separate of free trade agreements. The WTO rules were established according to the agreement of WTO members. A source close to the Axios said that it will be considered of walking away from the WTO and commitments without notifying the U.S withdrawal, but it is expected that the U.S Congress will not agree to the supposed bill.
Point to be noted that the White House spokeswoman also informed that the bill was just a draft. There will be news if it is going to an actual legislation and the U.S administration wasn’t trying to roll out. The news outlet reported last Friday that Trump had asked aides regarding pulling out the United States from the WTO. Trump said that world had used the World Trade Organization to screw the United States. He also informed reporters that he didn’t plan to withdraw the United States from the WTO membership. He added that something should have to be done because we were not being treated on trade fairly. Point to be noted that the General Agreement on Tariffs and Trade was emerged by WTO. It was established in 1995 in order to resolve trade disputes. The WTO members were agreed to follow the system of rules to prevent unfair trade practices.