Trump Challenges Yet Another International Trade Scam: ‘Developing Nation’ Status

Seton Motley | Less Government |
Seton Motley | Less Government |
We Need to Develop
a Better Definition of ‘Developing’

The World Trade Organization (WTO):

“(I)s the only global international organization dealing with the rules of trade between nations.”

As with nigh all global organizations – much of what the WTO does is unfairly tilted against the United States.  (See also: The United Nations.)

The WTOs anti-Americanism is oft embodied in how the organization gives favorable trade designations to other nations – who don’t or shouldn’t qualify for said favorable trade designations.

And if the WTO can thwart President Donald Trump specifically – so much the better.

US Formally Opposes China ‘Market Economy’ Status at WTO:

“The United States has formally told the World Trade Organization (WTO) that it opposes granting China market economy status, a position that if upheld would allow Washington to maintain high anti-dumping duties on Chinese goods….

“China is fighting the EU for recognition as a market economy, a designation that would lead to dramatically lower anti-dumping duties on Chinese goods by prohibiting the use of third-country price comparisons.

“The U.S. and EU argue that the state’s pervasive role in the Chinese economy, including rampant granting of subsidies, mean that domestic prices are deeply distorted and not market-determined.”

The US and the EU are, of course, correct:

“A ‘non-market economy’ is any foreign country that the U.S. Department of Commerce determines does not operate on market principles of cost or pricing structures.  When this is the case, sales by the exporting country do not reflect fair value….”

China subsidizes the daylight out of nigh everything it exports.  Which means they can charge much less for their stuff.  Which undercuts everyone else on the planet.

That ain’t free trade.  That ain’t fair trade.  For this reason – and many, MANY other reasons – China ain’t a “market economy.”

Another WTO nation designation – is “developing nation.”  In fact, “developing nation” status isn’t even decided by the WTO – it is decided by the nations themselves:

“There are no WTO definitions of ‘developed’ and ‘developing’ countries. Members announce for themselves whether they are ‘developed’ or ‘developing’ countries….

“Developing countries comprise a majority of the WTO membership….

“Developing country status in the WTO brings certain rights.”

More like anti-free trade, anti-fair trade advantages.  So of course all sorts of non-developing nations – self-proclaim “developing nation” status.  So as to rip off the rest of the planet.


China’s ‘Developing Country’ Status in the WTO: Time for an Upgrade?


We in the US are thrilled with finally getting to 3+% Gross Domestic Product (GDP) growth in the post-Barack Obama Age of Trump.

How’s China been doing?

China Just Posted Its Slowest Annual Growth in 26 Years

That GDP growth rate?  6.7%.  More than double the number about which we are now thrilled – was their lowest in a quarter century.

China is the world’s second largest economy.  They have averaged nearly 10% per annum GDP growth – for over two decades.  Yet they continue to claim “developing nation” self-designation – to fraudulently milk the WTO advantages thereof.

That ain’t free trade.  That ain’t fair trade.  China ain’t a “developing nation.”

Another ongoing, rolling abuser of “developing nation” status – is Brazil.

Brazil is the world’s ninth largest economy.  That alone challenges their self-imposed “developing nation” status.

That doesn’t stop Brazil – from abusing the heck out of their advantaged status.  To wit: Their massive abuse of the global sugar market.

More than 100 nations sell sugar on the global market.  Brazil all by itself – controls almost half that market.

How does Brazil do that?  By subsidizing their sugar – to the tune of more than $4 billion per year.

That ain’t free trade.  That ain’t fair trade.

And because Brazil has self-designated as a “developing nation” – we are all basically prohibited from challenging Brazil’s world-market-warping mass subsidies.

This WTO nonsense – has been going on (and on, and ON) for DECADES.

The Trump Administration – is finally doing something about it.

ICYMI, U.S. Puts Forward New ‘Development’ Rules at WTO:

“The U.S. proposed new requirements that could disqualify China and other large emerging economies from being granted special treatment as a ‘developing’ nation at the World Trade Organization.

“The WTO generally gives poorer countries a break from certain international trade rules either by giving them more time to implement them or waiving them altogether. China is often granted this status, which irks the U.S. to no end.

“The argument: In its proposal, the U.S. says developing status shouldn’t apply to countries that fall under any of the following four categories:

“(M)embers of the Organization for Economic Cooperation and Development or in the process of joining the OECD;

“(M)embers of the G-20; a country classified as ‘high income’ by the World Bank;

“(O)r a WTO member that accounts for no less than 0.5 percent of global merchandise trade.”

Well those stipulations…make sense.

That it took decades for US to try to fix this…makes no sense whatsoever.

Thank God Donald Trump is finally attempting to right – yet another long-standing wrong.

This first appeared to Red State.

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