Trade Policy History Trade Law and Trade Institutions

Trade Policy History, Trade Law and Trade Institutions Steve Suranovic The George Washington University Fall 2019

Latest Trade Issues Rising Anti-Globalization Beliefs Trump Approach to Trade Suspicion of Free Trade Agreements Renegotiation of KORUS, NAFTA and Withdrawal from TPP Suspicion of WTO Suspicion of China

Latest Trade Actions US Use of Trade Policy Exceptions Section 232 (national security) 25% tariffs on steel; 10% on aluminum Against EU, Canada, China and others – Retaliations in place Report on autos (postponed) may lead to 25% tariffs on EU and other auto imports.

Latest Trade Actions US Use of Trade Policy Exceptions Sect 301 - US export harm and IPR violations against China 25% tariffs (raised from 10% in May ‘ 19) in place on ~$200 billion Aug ‘ 19 Trump announces 10% tariffs on remaining $300 billion of imports Restrictions on Huawei and other tech companies China retaliations in place

Trade Liberalization Eras Adam Smith, David Ricardo, British Corn Laws Pre-WWI globalization Post-WWII (GATT, Asian Tigers, etc) 1990 s Uruguay Round surge (WTO era)

Trade Protectionism Eras 19 th Century tariffs (Wiki) Great Depression (Smoot. Hawley tariffs) GATT relapses (VERs, MFA, Agriculture, etc) Post 2008 Financial Crisis

Trade Agreements GATT (General Agreement on Tariffs & Trade – 1948) WTO (World Trade Organization = GATT+ 1995) Regional Free Trade Agreements 279 RTAs in force, every WTO member https: //www. wto. org/english/tratop_e/region_e/rta_participatio n_map_e. htm

GATT/WTO Principles Most Favored Nation (MFN) Do not discriminate between two member countries in trade policies National Treatment Do not discriminate in regulations between domestic and imported products

GATT/WTO Principles Multilateral Trade Liberalization 8 Rounds of GATT (Geneva, Annecy, Torquay, Geneva, Dillon, Kennedy, Tokyo, Uruguay); 1 failed round in WTO (Doha Development Round) Tariff averages (a, b) Tariff Profiles (US, Brazil, China, India, Nigeria)

GATT/WTO Principles Trade Remedies (i. e, tariff increases) Antidumping A) LTFV ; B) Injury to import-competing firms Anti-Subsidy (CVD) A) govt. subsidies ; B) Injury to importcompeting firms Safeguards A) import surge ; B) Injury to importcompeting firms

US Trade Remedy Actions (# Active) Count of Product Group Country AD CVD Grand Total China 128 62 190 India 24 19 43 Korea 26 7 33 Others 194 39 233 Total 372 127 499 Source: USITC, AD and CVD Orders as of Aug 20, 2019

Uruguay Round (1986 -1994) 1995 WTO Begins New Trade Issues Services (GATS) Agriculture (Ao. A) Textiles (ATC) Intellectual Property (TRIPs)

WTO Dispute Settlement 1) Consultations 2) Panel Formation 3) Appeal 4) Resolution a) Comply with DSB decision b) suspension of concessions

WTO Dispute Settlement Disputes Page (531 since 1995) DS 2 US Reformulated Gasoline DS 26 Hormone treated meat DS 248 -254 US Steel Safeguards DS 294+ Zeroing in AD cases Disputes Map