Korean media: "WTO's defender", shifting from the United States to China!

On October 14, the Korean newspaper "Hankyeong Daily" published an article stating that the origin of the World Trade Organization (WTO) is usually considered to be the General Agreement on Tariffs and Trade (GATT). Although the GATT signed by 23 countries in Geneva in October 1947 was not an international organization, it guided the global trade order for nearly 50 years. Countries held multilateral negotiations regularly, gradually reducing tariffs. Eventually, after the eighth round of Uruguay Round negotiations, all parties reached an agreement to establish the WTO, which was officially launched on January 1, 1995.

Under the GATT and WTO systems, global trade volume increased more than 40 times, and average tariffs dropped from around 20% to below 5%. The biggest beneficiary was China. Since the reform and opening-up policy started in the late 1970s, China joined the WTO in November 2001, fully integrating into the global economy. In the following 20 years, China achieved remarkable achievements, with GDP and trade volume increasing by more than 10 times.

The United States has long been a defender of the two principles of "free trade" and "multilateralism" of the WTO. However, when China began to threaten its position, the United States changed its stance. President Donald Trump, who took office in January 2017, believed that past trade practices were unfair, leading to damage to U.S. exports, decline in manufacturing, and unemployment. Subsequently, he refused to appoint members of the WTO Dispute Settlement Body, causing the appellate body to fall into paralysis. During his second term, the Trump administration went further, launching a "tariff war" against countries around the world, imposing tariffs as high as several percentage points.

At the same time, China emphasized that it must maintain the multilateral trading system centered on the WTO and oppose all forms of protectionism. In the 30 years since the establishment of the WTO, the United States has shifted from being a defender to a destroyer, while China has moved from being a beneficiary to a defender.

Can the WTO overcome the crisis caused by the Trump administration and maintain free trade? This is a crucial question that may determine South Korea's future. Because like China, South Korea is also one of the main beneficiaries of the WTO system.

Original: www.toutiao.com/article/1845949519569417/

Statement: This article represents the views of the author.