International Politics
Prof. Mark Shirk
November 5, 2017
Trump & The WTO
President Trump has talked about leaving multiple deals that the United States has been in for varying degrees of time, these include NAFTA, NATO, and Paris Climate Accords. While these deals are certainly up for debate another organization he has been discussing about potentially leaving is the WTO, World Trade Organization. Trump talked a lot at length about this topic during the course of his campaign and why he has been hush mostly about it since the election the citizens of the United States should not sit idly and let him say anything he wants. Trump withdrawing from the WTO would be a serious mistake for the United States.
The WTO exists to bring about free trade around the world, (Shirk, Lecture 18) and not only the United States, but the world, benefits from free trade. By remaining in the WTO the United States would show that no one country is above the law of the WTO which is good for maintaining order and stability in the world trading market. Take for example in 1995 the United States tried to ban the import of Costa Rican underwear to the US. However, the WTO ruled in favor of Costa Rica over the United States and while the US appealed they lost. The US set an example for other countries by accepting the WTO's decision showing that not even the most powerful country in the world was above the rule of the WTO. Trump's position on the WTO is that they are not effective enough and not powerful enough to enforce the majority of their rulings. He believes that the United States should make their own trade deals which will mean the US not the WTO sets the guidelines, preferably in favor of the US. However, according to a Forbes.com article this is not a good idea, "Withdrawing from the WTO would be a disaster. Other countries could raise tariffs against us, dump products in our markets, steal our intellectual property and cheat of every which way from Tuesday and our ability to retaliate would be extremely weakened." The United States faces harsh times if Trump withdraws us from the WTO.
The WTO is not perfect but it helps maintain stability and order for trade around the globe. It governs countries with certain rules that cannot be broken or there will be consequences. Countries look the US to be an example with the WTO, as if the most powerful country in the world abides by the WTO than others should follow. Leaving the WTO would, not only hurt the United States with potential tariffs, but also hurt world trade and the global economy. President Trump should keep the United States firmly entrenched in the World Trade Organization.
Brinkley, John. “Trump May Withdraw The US From WTO.” Forbes, 13 Feb. 2017, www.forbes.com/sites/johnbrinkley/2017/02/13/trump-may-withdraw-u-s-from-wto-outside-advisor-says/#2abd61c333bb.
http://wtocenter.vn/wto/commentaries/costa-rica%E2%80%99s-challenge-us-restrictions-import-underwear
The WTO exists to bring about free trade around the world, (Shirk, Lecture 18) and not only the United States, but the world, benefits from free trade. By remaining in the WTO the United States would show that no one country is above the law of the WTO which is good for maintaining order and stability in the world trading market. Take for example in 1995 the United States tried to ban the import of Costa Rican underwear to the US. However, the WTO ruled in favor of Costa Rica over the United States and while the US appealed they lost. The US set an example for other countries by accepting the WTO's decision showing that not even the most powerful country in the world was above the rule of the WTO. Trump's position on the WTO is that they are not effective enough and not powerful enough to enforce the majority of their rulings. He believes that the United States should make their own trade deals which will mean the US not the WTO sets the guidelines, preferably in favor of the US. However, according to a Forbes.com article this is not a good idea, "Withdrawing from the WTO would be a disaster. Other countries could raise tariffs against us, dump products in our markets, steal our intellectual property and cheat of every which way from Tuesday and our ability to retaliate would be extremely weakened." The United States faces harsh times if Trump withdraws us from the WTO.
The WTO is not perfect but it helps maintain stability and order for trade around the globe. It governs countries with certain rules that cannot be broken or there will be consequences. Countries look the US to be an example with the WTO, as if the most powerful country in the world abides by the WTO than others should follow. Leaving the WTO would, not only hurt the United States with potential tariffs, but also hurt world trade and the global economy. President Trump should keep the United States firmly entrenched in the World Trade Organization.
Brinkley, John. “Trump May Withdraw The US From WTO.” Forbes, 13 Feb. 2017, www.forbes.com/sites/johnbrinkley/2017/02/13/trump-may-withdraw-u-s-from-wto-outside-advisor-says/#2abd61c333bb.
http://wtocenter.vn/wto/commentaries/costa-rica%E2%80%99s-challenge-us-restrictions-import-underwear
Hi Jonathan! Loved the post, I found it very interesting overall. I just have a couple of points i'd like for you to think a little bit about: You say "The WTO exists to bring about free trade around the world, (Shirk, Lecture 18) and not only the United States, but the world, benefits from free trade." Let's think about this a bit- DOES the entire world truly benefit from free trade? What about underdeveloped nations that have been exploited for their natural resources and cheap labor? Secondly, you write an entire paragraph paraphrazed from Forbexs about how taking us out of the WTO would hurt US. this is one of our biggest downfalls as Americans. The WTO isn't only about us, trade in the world isn't only about us- I know this wasn't your overall message but I found it interesting that Forbes only focuses on us.
ReplyDeleteThanks Morgan and I think you're right that the WTO isn't just about us but it is an American based company so it most likely only really cares about what its audience, American citizens, will think.
DeleteHi I agree with you that Trump debating whether or not to leave the WTO is very concerning. While Trump may be a realist, I think that it is very unwise of him to say he plans to or to entirely pull the US out of four major deals before being president for a year. I think it is very difficult for citizens to combat what Trump says. While his fervent supports will obviously support whatever he says, those who oppose him are often scorned and are disregarded. Those in Congress who go against the president are attacked and face repercussions for speaking their voice, especially from their constituents. While I think the WTO forcing the US to sell Costa Rican underwear is a tad much, I believe that the guidelines set forth by the organization have greatly improved trade through regulations. I agree that Trump must consider what pulling out of the WTO would do for his MAGA campaign.
ReplyDeleteThanks for your reply Taylor and I agree that maybe the WTO forced a little on the underwear but overall they have helped not hurt trade around the world.
DeleteYea i agree with you that America leaving the WTO would not benefit America. I believe that an economically sound world needs some sort of way to control the market. If America actually does leave the WTO I believe that countries will have no problem taking advantage of our economy and the international market will suffer.I do not believe Trump will actually take America out of the WTO because I believe he is just using the fact that America is such a big economic power to get what he wants out of the WTO.
ReplyDeleteThanks Theo and I personally agree with you that Trump will not take the US out of the WTO. I just hope he stops even talking about hypothetically leaving it.
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