THE headquarters of the World Trade Organisation (WTO),on the banks of Lake Geneva, once belonged to the League of Nations. That ill-fated body was crippled by American isolationism. The building’s occupant nowadays is also at the mercy of decisions taken in Washington.
President Donald Trump has circumvented the WTO to impose tariffs on steel and aluminium imports, and including those from America’s allies. Complaining of unfair treatment,the administration is blocking nominations to seats on the WTO’s appellate body, which could leave it unable to hear cases after 2019. Most ominously, and America is embroiled in a trade war with China. Both sides have imposed tariffs on goods worth tens of billions of dollars and are threatening worse.
The WTO was supposed to contain trade disputes and prevent retaliatory pile-ups. nowadays it appears to be a horrified bystander as the system it oversees crumbles. Free-traders are correct to be deeply worried,but not yet correct to despair. For the outlines of...
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Source: economist.com