Reference News website reported on May 6 that Kyodo News reported on May 5 an article titled "Former WTO Chief Reveals the Secrets of Negotiating with the US". The article is compiled as follows:

The high tariff policy of US President Trump is hitting the world. For trading partners, Trump also requires them to expand the purchase of American products in trade negotiations and eliminate "non-tariff barriers" which restrict trade in ways other than tariffs. Therefore, the Japanese government and enterprises have to take countermeasures. How should they deal with the self-proclaimed "negotiation master" Trump? A reporter interviewed Pascal Lamy, former General Director of the World Trade Organization (WTO), known as the "guardian of free trade", to seek advice on the secrets of trade negotiation.

Kyodo News asked: President Trump is promoting high tariffs, even targeting allied Japan.

Pascal Lamy replied: I believe that opening markets to foreign countries is correct, and the reason is simple — if the countries engaged in trade each do what they are good at, trade will bring reasonable benefits. Opening markets is a win-win activity.

Different from Europe and Japan, many Americans think that they have lost jobs because of the opening of markets. The impact is great due to the imperfection of the social security system for protecting workers (unemployment). Trump was elected president by taking advantage of the emotions of some voters who believe that trade has caused harm to some people.

Unfortunately, the American social security system is not perfect enough. Trade has become a scapegoat for venting dissatisfaction and hatred.

Asked: Trump calls himself the "Tariff Hero" and uses tariffs as weapons.

Answered: Trump believes that tariffs are very effective. He regards tariffs as sharp tools, believing that as long as he threatens with it, the other party will submit. However, there are obstacles. First, tariffs will impose a burden on American consumers, leading to inflation. More importantly, trading partners have the ability to retaliate.

I always say that if you want to engage in trade, you need to be prepared for negotiation. This also means that when your interests are severely harmed, you must be prepared to implement retaliation. If countries with trade relations with the United States do not tolerate its bullying and tough policies, Trump's actions will be restricted.

Asked: How should Europe, Japan and other countries respond?

Answered: The EU economy is very large, and so is the Japanese economy. The EU and Japanese markets are very important for US exporters. The EU and Japan have the ability to maintain balance by using the importance of their own markets during tense relations with the United States.

About 15% of US imports account for the global total. Most countries in the world, including emerging market countries such as China, Indonesia, Brazil, hope to open markets. We know that trade can bring a better world and future. It is hoped that WTO member countries will reaffirm their stance against protectionism and cooperate to show that the trade system has not been shaken. (Compiled/translated by Liu Jieqiu)

Original text: https://www.toutiao.com/article/7501172526803911168/

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