Trade Policy History, Trade Law and Trade Institutions

Trade Policy History, Trade Law and Trade Institutions Steve Suranovic The George Washington University Recent Trade Issues Rising Anti-Globalization Beliefs US Withdrawal or Suspicion of FTAs Renegotiation of KORUS, NAFTA Withdrawal from TPP

Recent Trade Issues US Use of Trade Policy Exceptions Sect 301 - US export harm and IPR violations against China 10% tariffs in place on ~$200 billion Increase to 25% possible on March 1 just again suspended to allow negotiations to continue Recent Trade Issues US Use of Trade Policy

Exceptions Section 232 (national security) 25% tariffs on steel; 10% on aluminum Against EU, Canada, China and others Imminent report on autos may lead to 25% tariffs on EU and other auto imports. Trade Liberalization Eras Adam Smith, David Ricardo, British Corn Laws Pre-WWI globalization Post-WWII (GATT, Asian Tigers,

etc) 1990s Uruguay Round surge (WTO era) Trade Protectionism Eras 19th Century tariffs (Wiki) Great Depression (SmootHawley 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_participation_ma p_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 120 52

172 India 23 18 41 Korea

26 7 33 Others 185 36 221

Total 354 113 467 Source: USITC, AD and CVD Orders as of Feb 1, 2019 Uruguay Round (1986-1994)

1995 WTO Begins New Trade Issues Services (GATS) Agriculture (AoA) Textiles (ATC) Intellectual Property (TRIPs) WTO Dispute Settlement

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

WTO Dispute Settlement Disputes Page (531 since 1995) DS2 US Reformulated Gasoline DS26 Hormone treated meat DS248-254 US Steel Safeguards DS294+ Zeroing in AD cases Disputes Map