Wednesday, November 21, 2018

Jakob Hanke — EU and China break ultimate trade taboo to hit back at Trump

Brussels and Beijing on Wednesday launched explosive cases at the World Trade Organization, in which they will argue that Trump’s tariffs on steel and aluminum, imposed in May, cannot be justified on grounds of national security, as the White House claims. The EU and China were joined in their protest by Mexico, Norway, Russia and Canada.
The six-fold attack on Trump is a landmark departure from the orthodoxy of trade diplomacy as countries have traditionally shied away from challenging restrictions justified by national security concerns, for fear that such a case could blow up the entire global trading system.
Whichever way the WTO rules, Pandora’s box has been opened. If it rules that national security can justify tariffs, the decision could inspire other countries to play the security card. On the other hand, if Washington finds itself backed into a corner, it could simply quit the WTO.…
More unraveling.

Washington is now openly weaponizing trade, finance, and economics in the attempt to maintain and extend US hegemony.

Not going down so well.

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