President Donald Trump has gone on record to say that India and China are not “developing nations” anymore. He also said that the nations were ‘taking advantage’ of the tag provided by the World Trade Organization. The President also describes India as the “Tariff King”, due to India levying high duties on US products.
Trump asked the WTO, in July, to define how the ‘developing country’ tag is designated. This move targeted specifically China, India and Turkey. Trump empowered the US Trade Representative (USTR), in a memorandum, to begin taking disciplinary actions if any advanced economies are inappropriately taking benefits of the WTO loopholes.
At a gathering in Pennsylvania, while addressing the audience the President said that India and China are not developing nations and cannot take this benefit from the WTO.
He went on to say that “India and China had been taking advantage of the US for years and years”. The Geneva-based WTO is an intergovernmental organization that regulates international trade between nations.
Under the global trade rules, developing countries claim entitlement to a longer timeframe for the imposition of safeguards, generous transition periods, softer tariff cuts, procedural advantages in WTO disputes and the ability to avail themselves of certain export subsidies.
Trump hopes that the WTO will treat the US “fairly”. He said that the WTO views certain countries like China and India as “growing”. “Well, they’ve grown,” he said and warned that the US will not let such countries to take advantage of the WTO.