The world’s second largest economy China risks losing its membership from the World Trade Organizations.
It follows comments by President Trump’s economic adviser that there could be a case for “evicting China” from the World Trade Organization (WTO).
Kevin Hassett chairman of the president’s Council of Economic Advisers told the BBC that China had “misbehaved” as a member of the WTO.
He also claimed that the US had been failed by the organization. But Mr Hassett President Trump’s hardball strategy on international trade is working.
On the WTO, President Trump’s administration has taken an approach many consider disruptive.
It poses a significant challenge to the WTO’s ability to settle disputes between member countries about alleged breaches of its rules.
What is the WTO?
The World Trade Organization was established in 1995, when it took over from the General Agreement on Tariffs and Trade (Gatt).
It came into force in 1948 and based in Geneva. It has 164 members representing 98% of world’s trade.
It deals with the rules of trade between nations and aims at promoting international commerce. WTO agreements are lengthy but want to stop countries discriminating against each other.
The WTO wants to reduce barriers to free trade such as tariffs or quotas. Countries can also use the WTO to handle trade disputes.
A key element in the WTO disputes system is a body which considers appeals against initial rulings by dispute panels.
Source: Africafeeds.com
