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Shayne Heffernan

USA Caught Out on WTO Breaches

By Shayne Heffernan2 min read

China's Ministry of Commerce (MOC) issued a report on the World Trade Organization (WTO) compliance of the United States for the first time on Friday.

The report reviewed U.S. performance on following WTO rules, and expressed concerns over U.S. policy measures that undermine the multilateral trading rules, impose unilateral sanctions, manipulate double standards in industrial policies, and disturb global industrial and supply chains.

The concerns cover 11 areas, including tariff and non-tariff barriers, industrial subsidies, agricultural subsidies, trade remedies, standards and technical regulations, trade in services and intellectual property rights.

The United States has not only selectively implemented WTO rulings, but has also blocked appointments of new Appellate Body members, which led to the "paralysis" of the Appellate Body.

The United States has a long history of taking unilateral measures against other members under the guise of so-called "national security," "human rights" and "forced technology transfer," and has also coerced others into abiding by its diplomatic policies and illegitimate demands, the report said.

In addition, the United States has implemented exclusive and discriminatory subsidy policies, and has disrupted other countries' industrial development through means like export control, the report added.

It has instigated decoupling and fragmenting industrial and supply chains, tried to utilize unilateral tariff measures to force re-shoring of industrial chains, established U.S.-centered industrial and supply chains through massive subsidies, and promoted near-shoring and friend-shoring based on so-called "values," the report said.

As the world's largest economy and an important founder and principal beneficiary of the multilateral trading system, the United States should have set a good example by abiding by the rules, honoring its commitments, and upholding the authority and efficacy of the multilateral trading system, according to the report.

China will, as always, maintain close communication and cooperation with all parties, fully and deeply participate in the reform of the WTO, and work together to promote the multilateral trading system to play a bigger role in global economic governance, said the MOC.

Shayne Heffernan

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