Can the WTO resolve the ongoing trade disputes?

World
Europe

01:54

After US President Donald Trump unilaterally imposed tariffs on foreign imports, he has seen a backlash from many of his trading partners, who have imposed retaliatory tariffs of their own.

Now Trump is threatening even more tariffs and has brought cases to the World Trade Organization (WTO). Will this be a moment for the WTO to flex its muscles and resolve the ongoing trade disputes?

The US may have an upper advantage in that they know WTO rules well, said Huo Jianguo, vice chairman of the China Society for WTO Studies. The Trump administration faces a tremendous amount of backlash from China, as well as its traditional allies such as Germany and Canada. And WTO case might be a way for the US to free itself of the tariffs swamp, said Huo.

On the other hand, the US has stopped appointing judges to the WTO, which exacerbates the problem of the institution functioning, as it now only has four judges, instead of the usual seven. This might work in Trump’s favor as the organization is not operating the way it should.

Watch the rest of the discussion in the video above.