Haider Al lawati -
haiderdawood@hotmail.com -
It seems that the world will see further tensions in the upcoming period as a result of the policies pursued by American President Donald Trump on global trade. The Trump administration harshly criticised the World Trade Organization, accusing it of being “incapable” of sanctioning unfair trade practices and saying its decisions are not binding on the United States, despite the WTO being an independent organisation with its own policies and laws on commercial arbitration.
This statement is directed against China, considering the almost daily criticism of it by the current US administration, China retaliated by issuing a warning to the US.
The warning states that in the event of ignoring the rulings of the WTO, this will ignite a “trade war” as a result of US’s position and repeated criticism by the American president of the WTO.
On its part, China confirmed in a statement by an official of China’s Ministry of Commerce that “in case the members of the WTO ignored the rulings for their own interests, and refused to enforce its decisions on disputes, the trade war that took place in the 1930s might be reignited”.
His speech was directed to key members of the WTO to practice what they preach, abide by WTO rulings and perform their duties in spite of the criticism of the US administration.
The White House on the other hand is continuing — under Trump’s administration — its attacks on the WTO (which has 164 members), despite calls by other countries, including China and the European Union, to tone down the rhetoric. What China and the rest of the world are facing today was inevitable, as Trump had previously spoken about these issues, in particular the trade with China, during his campaign tours. The American president had accused China at previous press conferences of lack of cooperation in the area of currency by saying “we are affected by the decrease in the value of Chinese currency which can promote Chinese exports to the outside world”.
In this regard, many executives in Middle East countries and others are concerned that trade tensions between the US and China will lead to foggy growth prospects of global energy demand and the recovery of oil prices.
Countries in the region, especially Saudi Arabia, are anxious about the tensions caused by the outbreak of a trade war between America and China on trade, manufacturing and currency issues. Chinese President Xi Jinping spoke of free trade in his speech at the recent Davos Forum on various issues, highlighting Beijing’s desire to play a larger role at a time when the US is turning its focus on domestic affairs.
Meanwhile, many at Davos confirmed that the biggest risks that threaten energy markets come from the trade conflict between the US and China, extending from geopolitical issues in Asia to possible trade wars.
The Chinese president cautioned other countries of giving priority to their national interests without careful consideration, possibly referring to the policies of the new American president under the slogan “America First”.
During the election campaign, Trump pledged strong confrontation with China in the field of trade through some measures, including imposing new fee on imported goods.
In this context, many oil producers and officials from Western companies hope that the voice of reason prevails, considering that China, which is the world’s largest commodity exporter, depends greatly on free trade, and will suffer deeply from any new wave of trade protection measures and the broadening of anti-globalisation trends.
Many of those interested in such issues and in the escalating trade war between China and the US believe that the world needs stability to restore robust economic growth, a mission that can be achieved through cooperation at all levels.
China is considered today as one of the emerging forces in multiple disciplines, and a tough candidate to compete with the US in the upcoming period, threatening its status as the world’s major force, in addition to its capabilities in areas of manufacturing, innovation and production and therefore competition in commercial and industrial fields.
At present, there is universal recognition that the future is for China at the expense of US domination, which will have significant implications on the global system.
This is what the US is trying to avoid by creating obstacles and barriers for China through the WTO as a gateway, suggesting to impose heavy taxes on Chinese exports and
criticising the WTO.
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