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Trump threatens to pull US out of WTO 'if they don't shape up'

President describes establishment of global trade regulator as 'the single worst trade deal ever made' in latest attack on institution

Chris Baynes
Friday 31 August 2018 09:54 BST
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Donald Trump has accused the WTO of treating America 'very badly'
Donald Trump has accused the WTO of treating America 'very badly'

Donald Trump has threatened to pull the United States out of the World Trade Organisation “if they don’t shape up”.

The president described the 1994 agreement which established the Geneva-based institution as “the single worst trade deal ever made”.

Mr Trump has repeatedly complained that the US is treated unfairly in global trade and has blamed the WTO, which regulates international deals and helps to resolve disputes between nations.

"If they don't shape up, I would withdraw from the WTO," he said in an interview with Bloomberg.

Last month the American leader claimed the body had “been treating us very badly for many, many years and that’s why we were at a big disadvantage”.

He warned: “If they don’t treat us properly we will be doing something."

Washington this week said it would block the reappointment of one of the WTO’s four remaining appeals judges next month, raising the risk of paralysing the body's dispute settlement system, which requires a minimum of three judges to operate.

The system looks set to break down when two other judges’ terms expire in December 2019, but it could seize up sooner if any judges recuse themselves from a case for legal reasons.

Mr Trump has claimed the WTO rules against the US in "almost all" disputes, but trade experts say the US wins a similar proportion of cases to other countries, if not more.

If the US veto paralyses the dispute system it would end 23 years of WTO enforcement, the keystone of international efforts to prevent trade protectionism, at a time of heightened global trade tensions.

Despite Mr Trump's remarks, his administration has sought the WTO's help in dealing with retaliatory tariffs imposed by China, the European Union, Canada, Turkey and Mexico after the US slapped duties on steel and aluminium.

Treasury secretary Steve Mnuchin has previously denied Mr Trump wants to pull out the WTO, after reports suggested he frequently lambasted the institution to advisers.

A US withdrawal from the institution would have huge ramifications for the global economy, but any decision to pull out would have to be approved by Congress.

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