In his speech, Trump also lashed out at countries such as India and China, saying that they've been receiving great advantages from the WTO, but it needs to stop as they're “no longer developing nations”.
Earlier, Trump asked the WTO to redefine its classification of developing countries, a status that gives special benefits to some nations; currently China and India are in the list.
Stuart Malawer, a professor of law and international trade at George Mason University believes that Trump is “delusional about the WTO. This is part of his totally dysfunctional trade policies”, the expert stressed.
“Focusing on minor issues such as classification of developed countries or market economies misses the much bigger picture. A rules-based system where trade disputes are settled peacefully is in everyone’s interest,” Malawer said.
In his view, the WTO is central to the world trade system. “WTO’s dispute resolution system is critical from [the point of view of] keeping trade disputes from spinning out of control. Russia, China and the US have all been active parties in this adjudicatory system,” the professor explained.
“Trump and his advisers need to take a step back,” Malawer said. Trump has directed threats at the WTO ever since he became President, but according to the expert, continued US membership in the WTO is in America’s national interest as well as that of the global trading community.
In his turn, Michael Every, head of Asia-Pacific financial markets research at Rabobank says that Trump's threats may be real, adding that it's “possible” that the US may pull out of the Geneva-based organization.
When asked about the effect the move may have if implemented, he said that "less imports would seem logical – perhaps less exports too, at first."
Should the US filfill its threat, the WTO "would be a paper tiger," the expert opined.
“But he is already ham-stringing and end-running the WTO anyway – so why bother?” the expert pointed out.
The views and opinions expressed by the speaker do not necessarily reflect those of Sputnik.
