WTO Developing Economy Designation: Financial Times

Donald Trump wants the United States to lead in all trade matters and he is criticizing the World Trade Organization for allowing too many nations claim developing-economy status that provides special treatment. These benefits include “procedural advantages in disputes, softer tariff cuts, the ability to maintain export subsidies and weaker commitments in negotiations”. Trump specifically noted China, Hong Kong, Singapore, Kuwait, Qatar, UAE, Turkey, South Korea and Mexico. Trump suggests the designation hurts countries that are even less wealthy and developed. The article from the Financial Times reports that Trump has threatened “if there was no breakthrough within 90 days, the US would no longer treat certain countries as developing and not support their membership in the OECD.” This new challenge to WTO rules follows administration criticism about the global organization’s dispute settlement system and subsidy disclosures. – YaleGlobal