American Trade Policy on Hot Seat at WTO

A routine biennial review of U.S. trade policy included sharp criticisms from longtime allies, as 19 countries took the floor at the World Trade Organization, with another 35 expected to do so before the two-day review was finished. The U.S. ambassador to the WTO, Dennis Shea, said the organization is not well equipped to handle the fundamental challenge posed by China, which continues to embrace a state-led, mercantilist approach to the economy and trade. Anticipating criticisms over America's refusal to allow any appointments to the appellate body, he said: "In our assessment, members are in the early stages of grappling with our collective failure to confront problems that have been growing for years."

The presentations Dec. 17 were summarized by a Geneva trade official. Ambassador Marc Vanheukelen of the European Union said Donald Trump's protectionist rhetoric "has turned into reality and the repercussions of tariffs and other restrictions are being felt at the heart of this organization, and more generally in global growth prospects."

Canada's ambassador to the WTO, Stephen de Boer, said his country is very concerned that the U.S. is arguing that it has a national security exemption that justifies its steel and aluminum tariffs, and that the U.S. may continue to use this exemption for other products. Canada worries that other countries might also try this tack.

China's Ambassador Zhang Xiangchen said all countries have the responsibility to address the challenges of economic globalization, and the right way is not to erect trade barriers but rather to have initiatives domestically and help those most affected to adjust. "The same goes for the WTO. If the roof of this building is leaking, we should work together to fix it, rather than dismantling it and exposing all of us to rains and storms," he said.