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This week WTO judges found that the US did not fully comply with a World Trade Organization ruling and could face Chinese sanctions if it refuses to remove certain tariffs that break WTO rules. This relates to investigations carried out between 2007 and 2012 (so before President Trump) on Chinese products such as solar panels and wind towers. The current administration has challenged the finding. The top WTO court, the Appellate Body, however, has a staffing problem as President Trump has been blocking the process to reappoint members – the Body is supposed to have seven members, but by December this year it will have only one. This could cause a temporary collapse of the court.
Why does this matter? This case shows how the WTO has lost most of its effectiveness in dealing with trade between the two largest nations. Moreover, the collateral damage of the US withdrawing support for WTO could mean the trade body may not be able to function for other countries too. And this could start to figure into Brexit discussions.
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