Trump suggests ignoring World Trade Organization in major policy shift

[yallerdawg]

Source: WaPO, By Damian Paletta and Ana Swanson

The Trump administration on Wednesday announced a sharp break from U.S. trade policy, vowing it may ignore certain rulings by the World Trade Organization if those decisions infringe on U.S. sovereignty.

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Trump's threatened tariffs and other trade barriers could violate WTO rules and bring blowback from other countries in the trade organization. But the agenda signals the Trump administration could simply ignore those complaints.

Several trade experts said Trump's decision to work outside of the WTO in some cases could create a chain reaction, with countries deciding to impose sanctions and tariffs to help their own businesses and penalize U.S. manufacturers.

If the United States signals it will not comply with WTO decisions, and other countries impose retaliatory penalties against U.S. imports, it could usher in an era of economic protectionism worldwide. Economists and industry groups fear that could trigger a global trade war that could disrupt international business and growth.

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Much more at: https://www.washingtonpost.com/news/wonk/wp/2017/03/01/trump-may-ignore-wto-in-major-shift-of-u-s-trade-policy/?utm_term=.bc5f3830133f

[malaise]

1. How does that work for the rest of us?

It is a significant feature of the of the neo-liberal Washington consensus model.

[yallerdawg]

2. What happens when the world discovers the US doesn't honor agreements or...

keeps its word? When an election can null and void everything that came before?

We are an import nation. If our imports cost more, who does that fall on?

If our exports become more costly, and less desirable to the world - we lose expansion and jobs.

If we have legitimate grievances, we have legitimate remedies within the rules and agreements.

Chad Bown, a senior fellow at the Peterson Institute for International Economics, said he fears the administration's criticism of WTO rules could end up creating a more lawless global system. “The difficulty is, once we step away from that and say the WTO rules imply a lot more flexibility in what we’re allowed to do, we can be 100 percent certain other countries will start to do the same. That’s what will ultimately undermine the U.S. system, and there will be big repercussions for U.S. exporters.”

[rzemanfl]

3. Next will come not honoring debts. n/t

[yallerdawg]

5. Guess what?

That's coming up next.

The debt ceiling is the country's legal borrowing limit set by Congress. For years, lawmakers have fought over whether and by how much the ceiling should be increased.

When they can't agree, they temporarily "suspend" it. And when the suspension ends the debt ceiling resets at the level where it was plus whatever Treasury borrowed in the suspension period.

On March 15, the latest suspension expires and the debt limit will likely reset a little north of $20 trillion.

If Congress has not voted by mid-March to either extend the suspension or raise the ceiling, Mnuchin will have to start using special accounting measures just to keep paying the country's bills without violating the borrowing limit.

And that task will become increasingly treacherous as the so-called "X" date approaches.

The "X" date is when the special accounting measures are exhausted, at which point Treasury would only be able to pay bills with the revenue coming in. Since the federal government runs deficits every year, that revenue is never sufficient to cover all payments. That's why the Treasury borrows in the first place, to make up the difference.

http://money.cnn.com/2017/02/13/news/economy/debt-ceiling-mnuchin/

[malaise]

4. Rules to not apply to Groper Don the Con

so I guess that's why he wants more weapons - obey or die.