Trump Administration Prepares Bill Allowing US to Circumvent WTO Rules


Axios reported Monday that the Trump administration is looking to possibly abandon World Trade Organization rules and implement a Fair and Reciprocal Tariff Act.

Trump is again denying plans to withdraw the United States from the WTO but tells reporters in the Oval Office that the trade organisation needs to change its ways.

The draft bill would reportedly give the president the power to ignore the worldwide trade rules set by the World Tradt Organization, according to a draft copy obtained by AXIOS.

"If you look at the way China steals our intellectual property, we could complain to the WTO and might win on a specific case, but it could take five years and by the China has the property".

In an interview with Reuters last week, an unnamed source said that the President has privately expressed a desire to quit the WTO, but that it was not a serious proposal.

Soon thereafter, the White House denied that the United States was leaving the WTO.

Trump, she said, would like to see the system get fixed, and that's what he's focused on doing. "The current system gives the USA no leverage and other countries no incentive".

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President Donald Trump is really into starting and maintaining trade wars no matter how harmful, so it comes as no surprise that he wants to enact legislation allowing him to negotiate directly with other countries, ignoring precedent and rules and American interests. Washington is conducting a national security study that could lead to tariffs on imported cars and vehicle parts. That means any European retaliation over vehicle tariffs introduced by Mr Trump would likely target a bigger sum of American goods exported to Europe than the amount hit by the European measures responding to the metal levies.

Mr Trump's former head of communications, Anthony Scaramucci, wrote: "The United States Fair and Reciprocal Tariff Act, aka the U.S. FART Act, stinks".

A spokeswoman for the U.S. Trade Representative's office could not be immediately reached for comment on further details about such talks.

European Commission President Jean-Claude Juncker plans to travel to Washington this month to discuss Trump's trade dispute with his bloc.

The U.S. president has struck back against U.S. allies with tough tariffs and is planning to impose stringent trade penalties on China later this week.

Jean-Claude Juncker, the European Union commission president, is set to travel to Washington this month for a meeting with Trump, and European Union officials will take part in a public hearing organised by the Department of Commerce on July 19th.