GENEVA, Switzerland (Reuters) — China has called for a debate at the World Trade Organization on “trade turbulence” and how the global trade watchdog should respond in an apparent reference to tariffs launched or threatened by the United States.
U.S. President Donald Trump has announced sweeping 10 per cent tariffs on all Chinese imports, prompting Beijing to respond with retaliatory tariffs and to file a WTO dispute against Washington in what could be an early test of Trump’s stance toward the institution.
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The WTO discussion was the first time that mounting trade tensions were to be formally addressed on the agenda of the General Council, the watchdog’s top decision-making body.
An official at China’s mission to the WTO said the ambassador would voice “strong concerns” about unilateral and protectionist measures, without naming a country, and to call on members to work to counter such steps.
Director-general Ngozi Okonjo-Iweala has so far urged the WTO’s 166 members to refrain from retaliating in the event of tariffs, in order to avoid “catastrophic” trade wars.
Trade delegates said they did not expect any immediate outcome from the meeting, but that countries’ reactions could indicate the likelihood of an escalation of trade wars in response to planned U.S. measures.
Less than being a swipe at Washington, some delegates said they considered China’s call for a debate more as an effort to show itself as compliant with WTO rules — a posture that can help China win allies in ongoing global trade negotiations.
“They want to look reasonable and responsible and like the best student in the class,” said one delegate who was not authorized to speak publicly.
Tensions between the two top economies at the WTO long pre-date Trump’s arrival.
Beijing has accused Washington of breaking rules, while Washington says Beijing does not deserve its “developing country” status, which entitles it to special treatment under WTO rules.
The Trump administration has announced plans to withdraw or disengage from other global organizations, but the WTO has not yet been a major focus for the White House.
However, incoming U.S. Trade Representative Jamieson Greer has called the WTO “deeply flawed.”
