Trump targets India, China, directs WTO to stop lenient trade treatment of 'developing' countries

The United States of America President Donald Trump has made a big announcement on Saturday, leaving every developing nation baffled. In a move to end benefits availed by the developing countries, which includes ‘India’, Trump has directed his administration to change the rules in next 90 days to prevent self-declared developing countries from availing flexibilities in global trade.

He said that nearly two-thirds of the members of the World Trade Organization (WTO) have been able to avail themselves of special treatment and to take on weaker commitments under the WTO framework by designating themselves as developing countries.

“The WTO is BROKEN when the world’s RICHEST countries claim to be developing countries to avoid WTO rules and get special treatment. NO more!!! Today I directed the U.S. Trade Representative to act so that countries stop CHEATING the system at the expense of the USA!” Trump said in a tweet.

Here's the Tweet:

The WTO is BROKEN when the world’s RICHEST countries claim to be developing countries to avoid WTO rules and get special treatment. NO more!!! Today I directed the U.S. Trade Representative to take action so that countries stop CHEATING the system at the expense of the USA!

— Donald J. Trump (@realDonaldTrump) July 26, 2019

He directed the United States Trade Representative (USTR) to “use all available means to secure changes at the WTO that would prevent self-declared developing countries from availing themselves of flexibilities in WTO rules and negotiations that are not justified by appropriate economic and other indicators” in a presidential memoranda on Friday.

Trump has directed UTSR to not help any developing country’s membership in the OECD.

“They have already stopped treating India as dveloping country for the safeguard investigation. Even if India is not mentioned, it is already under threat,” said an expert on WTO issues.

“Instead of engaging in the WTO to reform it by appointing judges and help the crippled dispute settlement mechanism, the US is trying to bring in unilateralism in multilateralism by issuing directives. This is a new format of negotiations,” another expert said.

The memoranda said, the UTSR shall pursue this action in cooperation with other like-minded WTO members.

“Where appropriate and consistent with law, the USTR shall pursue this action in cooperation with other like-minded WTO Members,” he said in the memoranda.

HIGHLIGHTS

• US President Donald Trump says he will decide who is a developing nation.
• Trump has directed the concerned persons to make new law within next 90 days. 
• The move has been taken to end the benefits of developing nations.