Calling out American trade illegality | Current Affairs | Vision IAS

Daily News Summary

Get concise and efficient summaries of key articles from prominent newspapers. Our daily news digest ensures quick reading and easy understanding, helping you stay informed about important events and developments without spending hours going through full articles. Perfect for focused and timely updates.

News Summary

Sun Mon Tue Wed Thu Fri Sat

Calling out American trade illegality

2 min read

International Response to U.S. Tariffs

The recent decision by the United States to impose reciprocal tariffs has sparked widespread international criticism, despite the tariffs being paused for 90 days, except those on China. These actions by the U.S. have been deemed illegal under international trade laws established by the World Trade Organization (WTO).

Global Criticism and Actions

  • Several countries, including Singapore, Brazil, China, Japan, and Canada, have openly criticized the U.S. for violating WTO commitments.
  • China has not only criticized the U.S. but also imposed retaliatory tariffs and initiated a dispute within the WTO.
  • Canada has imposed retaliatory tariffs and filed a legal claim at the WTO regarding U.S. tariffs on Canadian automobiles.
  • Other countries like Fiji and Italy have expressed dissatisfaction with the U.S. tariff hikes, describing them as unfair and a mistake, respectively.

Silence from Some Nations

  • Some nations have refrained from explicitly condemning the U.S., opting instead to issue neutral statements.
  • India is notably silent, with two main justifications: 
    1. Ongoing negotiations for a bilateral trade agreement with the U.S., perceived as a reason to avoid public criticism.
    2. Dysfunction in the WTO’s dispute settlement body, considered by some as making legal actions ineffective.

Critique of India’s Position

  • It's argued that India's silence is questionable since the U.S. itself does not hesitate to criticize India's legal tariff rates.
  • Many other nations engaged in bilateral negotiations with the U.S. have publicly criticized the U.S. actions.
  • Public acknowledgment of the U.S.’s actions as violating WTO laws would demonstrate India’s commitment to a rule-based trading system.

Legal and Moral Implications

  • International law should not be viewed solely in terms of compliance and enforcement.
  • It serves to distinguish between public power and legitimate authority, allowing countries to question and challenge illegitimate actions.
  • Despite the WTO's current limitations, countries like China and Canada continue to file legal claims to bolster their legitimacy.

India's Role and Global Leadership

  • India, which often advocates for a rule-based trading system, did not sign a statement by 40 WTO member countries supporting trade multilateralism.
  • This is a pivotal moment for India to lead the Global South in promoting a fair and just trading order, consistent with its stated vision.
  • Tags :
  • World Trade Organization
  • U.S. Tariffs
Subscribe for Premium Features