US President Donald Trump is pursuing a "reset" of the World Trade Organization which he believes has treated American interests unfairly, US Trade Representative Robert Lighthizer said Wednesday.

In the latest US attack on the global trade referee, Lighthizer said: "I think the WTO is a mess."

"I think the WTO has failed America and has failed the international trading system," he told lawmakers in a hearing, adding that the United States "is not treated fairly."

After paralyzing the WTO's dispute settlement body to force reforms of the system Trump considers unfair to US interests, Lighthizer said Washington now plans to target tariff policy and special treatment of developing nations, among them China, the main US rival.

The US also will pursue a "phase two" trade deal with China and seek to "rebalance" the relationship with the European Union, where American businesses operate at a disadvantage, Lighthizer said in prepared testimony on Trump's trade agenda to House and Senate committees.

The next step on China following the "phase one" deal signed early this year -- that resolved a two-year long tariff battle -- "will focus on issues of overcapacity, subsidization, disciplines on China's state-owned enterprises, and cyber theft."

But within the WTO, Washington wants to change the "'special and differential treatment' for developing countries," he said, a designation that applies to China.

The WTO is in the process of selecting a new leader for the organization after Roberto Azevedo's surprise announcement that he would step down a year early, on August 31.

Asked what he wanted to see in a new WTO chief, Lighthizer said a key factor is to have someone who wants "fundamental reform," and understands that "an extremely large state run economy" like China cannot be disciplined under current global trade rules.

"So I look for someone who understands the nature of the problem of free economies dealing with China," he added.

Tensions with Beijing have skyrocketed over the coronavirus pandemic, and US Secretary of State Mike Pompeo was due to meet a top Chinese official in Hawaii on Wednesday, although the US government had not confirmed news reports of the meeting.

- Tariff reform -

In his attack on the WTO's dispute resolution procedures, which has seen 155 complaints filed against the United States, Lighthizer said the system "has effectively treated one of the world's freest and most open economies -- with an enormous trade deficit -- as the world's greatest trade abuser."

But the United States, which has filed 124 complaints against other countries, has won more cases than it has lost, including 20-0 against China and winning the biggest case ever against the EU in the longstanding dispute over subsidies for Airbus.

Even so, Washington will "seek a broader reset at the WTO," Lighthizer said, where "outdated tariff determinations are locked in place that no longer reflect members' policy choices and economic conditions."

He said the rules mean that "many countries with large and developed economies maintain very high bound tariff rates, far above those levied by the United States."

Commerce Secretary Wilbur Ross said Trump's ultimate goal is to reduce tariffs.

"The president has always had the idea that tariffs should be reciprocal," he told Fox Business. "His real purpose, though, is to bring them down everywhere."

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Russia to deliver verdict in spy trial of US ex-marine
Moscow (AFP) June 15, 2020
A Russian court on Monday will deliver a verdict in the trial of former US marine Paul Whelan who risks up to 20 years in prison on an espionage charge. The hearing at Moscow City Court is due to start at 0800 GMT. The trial has been held behind closed doors because Whelan is accused of seeking to obtain state secrets. The 50-year-old has been held in a Moscow prison since he was arrested in December 2018. He has maintained his innocence, saying he was framed and comparing himself to t ... read more