Yesterday, President Trump has suggested that the WTO is treating the U.S. “very badly”
In reality, the U.S. leads WTO in terms of dispute resolutions wins and in terms of intransigence to WTO functioning and reforms. Here is a slide from my lecture on international institutions frameworks highlighting this fact:
In the previous post, I also shown that the U.S. contributes disproportionately less than the EU and China to WTO budget: http://trueeconomics.blogspot.com/2018/07/3718-china-eu-and-us-arch-stantons-grave.html.
In fact, back in October 2017, President Trump claimed that: Trump, Oct. 25: “The WTO, World Trade Organization, was set up for the benefit for everybody but us. They have taken advantage of this country like you wouldn’t believe. And I say to my people, you tell them, like as an example, we lose the lawsuits, almost all of the lawsuits in the WTO — within the WTO. Because we have fewer judges than other countries. It’s set up as you can’t win. In other words, the panels are set up so that we don’t have majorities. It was set up for the benefit of taking advantage of the United States.”
Liquidity moves markets!Click here to learn how you can follow the money.
WTO dispute resolution rules require that none of the panelists on each 3-person panel hearing disputes cases can be from the country involved in a dispute (per Article 8: https://www.wto.org/english/docs_e/legal_e/28-dsu_e.htm). In other words, the number of experts from any particular country that are available to serve on dispute resolution panels is immaterial to the experts service in the U.S. dispute cases.
In reality, thus, the U.S. loses slightly fewer cases brought against it, than it wins cases brought against other nations by it. The high rates of U.S. losses and wins are fully comparable with those of other advanced economies and reflect, in fact, not some WTO bias against any given nation, but rather the simple fact that majority of nations, including the U.S. tend to bring to the WTO arbitration only such cases where concerns raised are well-founded and researched. Which, in effect, means that the WTO dispute resolutions system (slow as it might be) is effective at restricting the number of frivolous cases being brought to resolution, aka, a good thing.
Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.