Donald Trump Staggered the Global Trading System. Joe Biden Might Finish It Off.

pa href=https://www.cato.org/people/scott-lincicome hreflang=undScott Lincicome/a
/p




div class=fs-sm


pDear Capitolisters,/p

pEarly in 2022, Inbsp;a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=3w9o89HccARRmaSYpyfkoYJNAahQsB7vAKzGnoNGp43Hamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8096___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6YTY3ZTo4MmViZmI5NzJhNmExODEyN2FmYzk5ZTMwZDgxZWYwZmVjNWUzOGI5MzU5ZjhlYjZkM2NjYzEyZmRkOGY2MDQ3Omg6VA rel=noopener noreferrer target=_blankwrote/a how President Biden’s first year guiding U.S. trade policy was anbsp;mostly expected mix of good (better than Trump), bad (Trump 2.0), and ugly (actually worse). Recent events require me to update to those conclusions, and—spoiler alert—things have deteriorated significantly. In fact, it’s not hyperbole to say that Biden’s latest trade moves might pull the plug on the multilateral trading system as we know it./p

p(Insert ominous music here.)/p

/div

,

aside class=aside--right aside--large aside




div class=pullquote p-mb-last-child-0


pThe Biden administration is doubling down on some of Trump’s worst trade policies./p

/div



/aside

,


div class=fs-sm


pstrongA Brief History of the WTO/strong/p

pBefore we get to that, some quick background. In response to multiple world wars a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ3d3cud2FzaGluZ3RvbnBvc3QuY29tJTJGbmV3cyUyRm1hZGUtYnktaGlzdG9yeSUyRndwJTJGMjAxNyUyRjA2JTJGMzAlMkZwcm90ZWN0aW9uaXNtLTEwMC15ZWFycy1hZ28taGVscGVkLWlnbml0ZS1hLXdvcmxkLXdhci1jb3VsZC1pdC1oYXBwZW4tYWdhaW4lMkYlM0Z1dG1fc291cmNlJTNEQWN0aXZlQ2FtcGFpZ24lMjZ1dG1fbWVkaXVtJTNEZW1haWwlMjZ1dG1fY29udGVudCUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZiUyNnV0bV9jYW1wYWlnbiUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZg==amp;sig=ABfLUSZJyACgC9YSSwbLzJM762EyRGK8mtemyAz8WyPqamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8097___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6ZDRjMTpmYTljZDQ2ZmZkMjYzZWNiNDY3ODZkMDUyZjVkNDQxNTEyYWQzYmI2ZWNjODE3YjAxMGE3NTIxYWNmNWFiMWQxOmg6VA rel=noopener noreferrer target=_blankcaused in part/a by trade frictions, officials from several governments, led by the United States, created the General Agreement on Tariffs and Trade (GATT) in 1947. That agreement did two main things: 1) created anbsp;baseline set of multilateral (global) rules for member countries to voluntarily follow; and 2) established an impartial process for resolving government‐​to‐​government disputes related to those rules. In some ways, the GATT was pretty successful: Participating governments agreed to channel most trade restrictions into tariffs (the most transparent/​predictable, and thus a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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;sig=EALbPwKGoqYsnhVsmRysvWSRtk55jhHhr5ZBRQjD9Jn5amp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8098___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MDc4YzphM2Y2OWU0ZGEzNWQ2NDYyNzJhNmYxZmQ3ZTYwOGRkOWM3MWQyNjMwMWE0MTgxNzExMmM4NDgzYzU0Y2RhMTEwOmg6VA rel=noopener noreferrer target=_blankleast distortive/a, barrier), to cap those tariffs at certain levels (incrementally lowered via subsequent negotiating rounds), and to not discriminate in favor of certain other members (aka “most‐​favored nation” treatment or “MFN”) or their domestic industries (aka “national treatment” or “NT”). Over time, the combination of declining tariff levels, transparency/​predictability, and non-discrimination—along with non‐​trade things like containerized shipping and information technology—caused world trade to a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ3d3cuanN0b3Iub3JnJTJGc3RhYmxlJTJGMzAwMzQ1OTclM0Z1dG1fc291cmNlJTNEQWN0aXZlQ2FtcGFpZ24lMjZ1dG1fbWVkaXVtJTNEZW1haWwlMjZ1dG1fY29udGVudCUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZiUyNnV0bV9jYW1wYWlnbiUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZg==amp;sig=3NxbaLccUnXU4mDaofRhn1xySin3ggjbqBKVCQg4BwUsamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8099___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MThmNTplNTM2N2Q2NzNmZDRiM2Q1YTkzNmU2OTQwM2I1NjRhODcxMzNiNzFmNjFmODFiNWEwZjAxZWM4ZDNjMzcxMGMwOmg6VA rel=noopener noreferrer target=_blankincrease significantly/a. Cross‐​border armed conflict also declined, which many experts a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=HLKCSQVT7PLLoJiNQ2E684TyaFBpu6FJkb3tCpWRqBqAamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8100___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6YTFkODozMWE3MTczZTdlOTg4MmI3MzhiYTEwMmJhOTNiNWQzZDk2NWFmZWNlZWE4ZDI3MDA3ODM3MjU1ZDU4MTI5M2JjOmg6VA rel=noopener noreferrer target=_blankattribute/a (at least in part) to trade integration. And, seeing these benefits, many non‐​member nations sought to join the party./p

/div

,




figure class=figure responsive-embed-no-margin-wrapper
div class=figure__media






img loading=lazy src=/sites/cato.org/files/styles/pubs_2x/public/2022-12/incicome12-14-22-img-1.jpg?itok=U8XoNWVp width=462 height=363 alt=incicome12-14-22-img-1.jpg class=image-style-pubs-2x component-image /






/div
/figure

,




figure class=figure responsive-embed-no-margin-wrapper
div class=figure__media






img loading=lazy src=/sites/cato.org/files/styles/pubs_2x/public/2022-12/incicome12-14-22-img-2.jpg?itok=zlUpRUzh width=457 height=371 alt=incicome12-14-22-img-2.jpg class=image-style-pubs-2x component-image /






/div
/figure

,


div class=fs-sm


pThe GATT, however, was also flawed in important ways. Most notably, its rules didn’t cover important and growing trade areas (e.g., services and investment) and had big loopholes for certain non‐​tariff barriers. And its dispute settlement system was anbsp;mess. Anbsp;single member could block anbsp;panel decision from entering into force, there was no coherent appeals process or standing appellate body, leading to incomplete and inconsistent rulings, and member nations frequently ignored implemented rulings./p

pGovernments spent years a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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;sig=AAmWGovRiyFvyYgWn86HvtppbbidW9AvGxXC9ykngE8oamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8101___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6YzNlNDoyOTc0NThmZDBlNjZhYWYwMjMwZDQzNTliMDFjMzFjNTdlMjRiYjEyNTMxOTNkZTVkYzQ2YWQ3YWFkYjBjYTU5Omg6VA rel=noopener noreferrer target=_blanknegotiating/a to fix many of the GATT’s major flaws while maintaining the agreement’s core principles of non‐​discrimination and national sovereignty. The GATT’s successor, the World Trade Organization, came online in 1995 and—while not perfect—was anbsp;clear improvement over the old system: New agreements extended nondiscrimination policies to other areas of trade, more nations committed to follow these rules, and the dispute settlement system was overhauled. Now, panel decisions could be appealed to anbsp;new and permanent Appellate Body, and final rulings could no longer be blocked or ignored. Being sovereign nations, WTO members that lost anbsp;case could choose not to implement anbsp;given panel/​AB decision (for political or other reasons). But noncompliance—following anbsp;lengthy appeals and compliance process—meant that anbsp;winning member could retaliate in kind (primarily by withdrawing trade benefits, such as lower tariffs, that it had previously granted the losing party via the WTO agreements). Contrary to conventional wisdom, the WTO wasn’t a “trade cop” or anything like that; everything—new rules, new disputes, new enforcement, etc.—was driven by the members themselves, with the WTO being simply an independent arbiter of the rules to which everyone agreed./p

pFor all its warts, the WTO system proved to be successful both in helping to liberalize trade via anbsp;baseline set of core rules and principles and in providing anbsp;mechanism for members to settle disagreements without resorting to self‐​defeating, ever‐​increasing protectionism or, even worse, a href=https://url.avanan.click/v2/___https://ourworldindata.org/war-and-peace%23war-and-peace-after-1945#039;___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NmE5NToyZTM3Y2QzYmNmZDRlNGI1NjAyYWMwYzQyYjhjNzNiNmE0MzhlMzRlYmI2M2RkZDIxZGFhMGI0M2Q3NjBjNWJlOmg6VA rel=noopener noreferrer target=_blankshooting at each other/a. As Inbsp;a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ3d3cudGhlYnVsd2Fyay5jb20lMkZob3ctdG8tbWFrZS1hLWFtZXJpY2FzLW5leHQtdHJhZGUtcG9saWN5JTJGJTNGdXRtX3NvdXJjZSUzREFjdGl2ZUNhbXBhaWduJTI2dXRtX21lZGl1bSUzRGVtYWlsJTI2dXRtX2NvbnRlbnQlM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmYlMjZ1dG1fY2FtcGFpZ24lM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmY=amp;sig=BxGqB2Uhw7MenA1kiVveMjnxu6gnQXgsuf8eH22cEjopamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8103___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MDMwMToyZTk2ZjFhODhhNDJkNGM0ODY1YzA4MmNmMDRkMDhkMzNiZjVkYmQwZTM4Mjg4MWJmYWFlODVjNDE1MThlNDdjOmg6VA rel=noopener noreferrer target=_blankco‐​wrote/a anbsp;couple years ago:/p

/div

,


blockquote


div class=fs-lg


pThrough numerous multilateral negotiating rounds and the resolution of hundreds of disputes, the WTO and its predecessor, the General Agreement on Tariffs and Trade (GATT), have been a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ3d3cuY2F0by5vcmclMkZzaXRlcyUyRmNhdG8ub3JnJTJGZmlsZXMlMkZwdWJzJTJGcGRmJTJGcGE4NTYucGRmJTNGdXRtX3NvdXJjZSUzREFjdGl2ZUNhbXBhaWduJTI2dXRtX21lZGl1bSUzRGVtYWlsJTI2dXRtX2NvbnRlbnQlM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmYlMjZ1dG1fY2FtcGFpZ24lM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmY=amp;sig=7VEJytS8EP4npgVLX2zzqfmjFDzVLmNZBro5RhELVbQNamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8104___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MDdkODowYTkyNWRkZjVkMGM5ZmRkNWMxYjhjMWQxYzEzYTI4YmQ3ZDNjYWI4NDk3MjI0MDc1YTNmYzgxNGJkZjM0YzA4Omg6VA rel=noopener noreferrer target=_blankremarkably successful/a. When the United States and its allies began negotiating the GATT shortly after World War II, the average tariff of participating countries a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ3d3cuZGFydG1vdXRoLmVkdSUyRiU3RWRpcndpbiUyRmRvY3MlMkZ3MjE3ODIucGRmJTNGdXRtX3NvdXJjZSUzREFjdGl2ZUNhbXBhaWduJTI2dXRtX21lZGl1bSUzRGVtYWlsJTI2dXRtX2NvbnRlbnQlM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmYlMjZ1dG1fY2FtcGFpZ24lM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmY=amp;sig=4hwZJgf7imZC1TzAQUJbXCgYTBXbTavaQuVZZH8HGsH2amp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8105___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NTYxYjoxOGYxYTY3MzAzYjUwMDQ5OWMxZGZhNjVkMjEzOTdmN2ZjY2RmZmYwZDc2MTcxZWFmYzFjOTJkMDMwOGI2M2YxOmg6VA rel=noopener noreferrer target=_blankwas 22 percent/a. In 2018, the world’s applied tariff was just a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=5pRsCDTLvwuEbX8maFTciyZF55JTF22qjvj3bYMDyoFBamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8106___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6OGNiZTo5YTA4MGYyODM0NDVhMDg2MWFkNjRmZjEwMGVhYmIyM2Q0MDk0NjA1ZWU4ZDI3YmZhMzU3ZmY0YzYwMmI0ZjRiOmg6VA rel=noopener noreferrer target=_blank9nbsp;percent/a. Though declining slightly this year due to anbsp;number of factors, including trade tensions between Washington and Beijing, trade volumes a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=5pRsCDTLvwuEbX8maFTciyZF55JTF22qjvj3bYMDyoFBamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8106___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MTU0ZDpkZWFmMjA4N2UwYjEzYmVhMWI2Y2ExOTI0NTRiMWQ5ZWQ2YzMwNTM3M2QzM2E5ODZmNzUyZmViZGYxNzk0Zjg3Omg6VA rel=noopener noreferrer target=_blankhave/a grown by over 4nbsp;percent annually (on average) a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=5pRsCDTLvwuEbX8maFTciyZF55JTF22qjvj3bYMDyoFBamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8106___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NDc5YToxMDM3NTAxZGFhMzU2ZmRmMmVmOTZmMjE3MTY5ZDc5NTc2MTAzZDA5ZTU1YzNhY2ZiZmQ1Yzc4NjdlMjlkN2JkOmg6VA rel=noopener noreferrer target=_blanksince the WTO was first established in 1995. /aLikewise, the United States has effectively used the WTO’s dispute settlement system to hold countries accountable for violating their binding commitments. The president’s own Council of Economic Advisers a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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;sig=7v9bcHjnzq1xkkX8spRTVyRM7uRrNi1jbeo6VvWhMi8gamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8107___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6ZTAzMzoyMDUyZTE3MDQ4MmU0MDc0NTgyNWU1YWUzNWViN2VlZGZhZjhlMWMyNDg3MzViMzVlYjZkYTA2ZWQxMjJiZjkxOmg6VA rel=noopener noreferrer target=_blankacknowledged/a that the United States wins more than 85 percent of the cases it brings to the organization./p

/div


/blockquote

,


div class=fs-sm


pResearch also a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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;sig=FTUw6qD78XSZxJaWHtnFCLkcTpncpoeUfcEm19N19v4gamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8108___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6ZmZhYTo2MDY2ODA5YjdjNTNhNjAyNjkwZDc5ZGRkZGJiMjQwOGU0YmIwZmRjZGI1NTM1MDJiODg2YmIwYjgwNGQ3YmZjOmg6VA rel=noopener noreferrer target=_blankshows/a that members—yes, even China after it acceded to the WTO in 2001—usually agreed (again, voluntarily) to comply with WTO rulings they lost, and that this compliance, while surely not universal or perfect, produced far better economic and geopolitical outcomes than the previous GATT approach of nations taking matters into their own hands via tariffs or other protectionist measures. In short, the now 164 participating member governments so valued the WTO system and its trade and geopolitical benefits that they were willing to occasionally take their dispute lumps—whether through eliminating their protectionist measures or just agreeing to accept the WTO‐​authorized retaliation when the political cost of compliance proved too high./p

pstrongThen Came Trump/strong/p

pAs I’ve written repeatedly, the WTO has suffered from various problems for years—disputes took too long to resolve, certain rules needed updating, consensus among 160‐​plus members proved increasingly difficult, and so on. But the baseline rules and dispute settlement system continued to function reasonably well … until Donald Trump came along. In particular, the United States:/p

ulliBlocked the seating of new WTO Appellate Body members and pledged to do so until the organization undertook major “reforms” (which were never really pursued in earnest, especially given the need for everyone to agree to them). As anbsp;result, the WTO’s dispute settlement system ceased to function properly: Panels could still issue anbsp;decision, but anbsp;member could block its implementation by appealing it “into the void” (because there was no AB). So why even bother?/li
/ul

/div

,


div class=fs-sm


ulliImplemented global steel and aluminum tariffs on a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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;sig=GqetbHbGwwg8MbvEcjK3xoomCeJg3xRGdrwbus6rpSvAamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8109___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NjJjMTplZTBhMTYzYjk5YThiMjYyN2NkZGYxMzYzMzk2N2RhMjg5ZWU1ZGI0MzZmOWEyNTMxY2JmNzMwMzZkODM0NGNhOmg6VA rel=noopener noreferrer target=_blankobviously bogus/a “national security” grounds. (Briefly: Even if one were to ignore the U.S. steel industry’s financial health, stable output, and high domestic market share, Trump’s own Defense Department said it needed only 3nbsp;percent of U.S. production and didn’t support tariffs on imports from allies.) As Trump himself occasionally admitted, these tariffs had little to do with actual national security and were thus anbsp;flagrant abuse of the WTO’s ambiguous and highly deferential exception for measures taken to protect members’ “essential security interests.” For more than six decades, GATT/WTO members had mostly avoided invoking this loophole for illegitimate (protectionist) purposes out of fear that doing so would spark copycat “national security” protectionism, put dispute panels in an unwinnable position of having to debate members’ invocation of “national security,” and thus imperil the WTO system altogether. It was the “third rail” of international trade law, and President Trump grabbed it with both hands and then held anbsp;a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ3d3cueW91dHViZS5jb20lMkZ3YXRjaCUzRnYlM0RVdVJwVFhCVTdTOCUyNnV0bV9zb3VyY2UlM0RBY3RpdmVDYW1wYWlnbiUyNnV0bV9tZWRpdW0lM0RlbWFpbCUyNnV0bV9jb250ZW50JTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2ZmJTI2dXRtX2NhbXBhaWduJTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2Zmamp;sig=y15qq8KwJYoH7xrjVrciV49kjs4jtegvELUkBjdZ1KHamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8110___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MGNlYTowMTFhMjUzZTE3MDEzZDA1ODZiMTIyYWRhYzNmODJlZGJmYzM5NDkxOWY1OWI1NDBlZjI4YTYwYmQ2ZDA0ZmJlOmg6VA rel=noopener noreferrer target=_blankbig photo‐​op with the U.S. steelworkers union/a to celebrate./li
/ul

/div

,


div class=fs-sm


pCombined, these two policies inflicted severe damage on the WTO system. Under the “Trump Doctrine,” the invocation of “national security” was anbsp;get‐​out‐​of‐​trade‐​free card, regardless of how absurd and blatantly protectionist the measures at issue were, emand/em the AB‐​less WTO couldn’t effectively adjudicate any such moves. It’s anbsp;protectionist loophole you could drive an (American‐​made) tank through./p

pstrongWill Biden Finish the Job?/strong/p

pMost WTO members, to their credit, did not hop on the Trump Doctrine bandwagon. “National security” measures have proliferated anbsp;bit, but mainly against just one nation (China) and usually in relation to goods that—unlike most grades of still‐​tariffed steel (e.g., rebar)—have at least some plausible national security nexus. The WTO has thus continued to limp along, patiently waiting for some sort of negotiating breakthrough./p

pThe Biden administration’s latest moves, however, may cause nations to reconsider this approach./p

/div

,


div class=fs-sm


pFirst, the Biden administration has a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ0aGVkaXNwYXRjaC5jb20lMkZwJTJGdGhlLWJpZGVuLWFnZW5kYS13aGF0LXdvdWxkLWEtYmlkZW4lM0Z1dG1fc291cmNlJTNEQWN0aXZlQ2FtcGFpZ24lMjZ1dG1fbWVkaXVtJTNEZW1haWwlMjZ1dG1fY29udGVudCUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZiUyNnV0bV9jYW1wYWlnbiUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZg==amp;sig=G1V2xVPA757wzWWzaJDyW6WsYTz8MWRuurGtM81GaB1Yamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8111___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NDhlZTo2ODNjMDI0MDZjMTM5ZjYyOTNhNWNkZDI3MGE4ZTg5Yjk0NjI1NmYwM2U4ZTE1NTA3ZDEwOTM0NzM4ZjkzNjY1Omg6VA rel=noopener noreferrer target=_blanksurprisingly/a doubled down on the United States’ neutering of the WTO dispute settlement system. Thus, the Appellate Body remains in stasis; WTO members are increasingly appealing unfavorable panel decisions “into the void”; and—unsurprisingly—they’re also bringing a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ3d3cud3RvLm9yZyUyRmVuZ2xpc2glMkZ0cmF0b3BfZSUyRmRpc3B1X2UlMkZkaXNwdV9zdGF0dXNfZS5odG0lM0Z1dG1fc291cmNlJTNEQWN0aXZlQ2FtcGFpZ24lMjZ1dG1fbWVkaXVtJTNEZW1haWwlMjZ1dG1fY29udGVudCUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZiUyNnV0bV9jYW1wYWlnbiUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZg==amp;sig=eUzpk2zx334jtijZbbRnmhmrd4taN1iJ4Zc9wn8v8ZRamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8112___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6YjVhYjpjNmM2MmY2MWNkMmRhNGMxMmJhODk1ZGI2MzFkOTU3NTAxMGM4NGRkYTBjODdiOGU4ZjdlZGVjZGQwYjdkMjc4Omg6VA rel=noopener noreferrer target=_blankfewer cases/a as compared to the a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ3d3cud3RvLm9yZyUyRmVuZ2xpc2glMkZ0cmF0b3BfZSUyRmRpc3B1X2UlMkZkaXNwdXN0YXRzX2UuaHRtJTNGdXRtX3NvdXJjZSUzREFjdGl2ZUNhbXBhaWduJTI2dXRtX21lZGl1bSUzRGVtYWlsJTI2dXRtX2NvbnRlbnQlM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmYlMjZ1dG1fY2FtcGFpZ24lM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmY=amp;sig=mY17QPaDwcSEwPkfBgwmxtHBnTmq4y12XmmPFQx2E54amp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8113___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NjA5NjoxNTczMGU1MzA5ZmY5NGY3ZTA1NmVmNWJkZTY2NGNjNzE2YjNhYTY5OGFmMzEzZDAyYmVhMjhlMDY3NDcwY2Q2Omg6VA rel=noopener noreferrer target=_blankhistorical averages/a. As trade lawyer Simon Lester a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=4CgdZ3EPEhrEE5gb2rkB4BxMBTJbHDX7eowevr2SYzXyamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8114___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6YWQzYzpiODFhODJkODFhNjBlMjhhMjA3M2ZlNTgyMDI5MTRkODc3MWM4MWI1Zjc4ZmQ4ZGYyY2FlY2JkMWM1MGFkMjFmOmg6VA rel=noopener noreferrer target=_blanklaid out in March/a, the Biden administration’s position here is, just like Trump’s, indefensible—the U.S. is not only blocking AB appointments, but also has proposed emzero/em actual, concrete reforms that would, if enacted, clear the logjam./p

pSecond, the Biden administration has doubled down on not only Trump’s metals tariffs (which mostly remain in force, including against friendly nations), but also his harmful, nonsensical “national security” defense. In particular, after several WTO members predictably challenged the tariffs in dispute settlement, Biden’s U.S. trade representative continued her predecessor’s vigorous insistence that the WTO’s “national security exception” (in GATT Article XXI for trade in goods) prevented anbsp;panel from even considering the issue. As my Cato colleague (and former congressman emand/em WTO Appellate Body chair) James Bacchus a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ3d3cuY2F0by5vcmclMkZwb2xpY3ktYW5hbHlzaXMlMkZibGFjay1ob2xlLW5hdGlvbmFsLXNlY3VyaXR5JTNGdXRtX3NvdXJjZSUzREFjdGl2ZUNhbXBhaWduJTI2dXRtX21lZGl1bSUzRGVtYWlsJTI2dXRtX2NvbnRlbnQlM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmYlMjZ1dG1fY2FtcGFpZ24lM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmY=amp;sig=2SiYqtDL7wNDZmgNdmjU76ZeAGM6Tnian2eeSGJVTqrFamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8115___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NTcxMTo1MWVjNzQ3NWY4MTdhZmEzODNmNTU2MmNiOWNiY2Y5OTRkYTAyYzA5ODRkOWUzYzU2MzQ3ZjIwYWJjMjkxOWEwOmg6VA rel=noopener noreferrer target=_blankdetailed in anbsp;new paper last month/a, the U.S. position here is, like its position on the AB, indefensible: Not only does anbsp;basic review of the multi‐​paragraph text (and longstanding principles of treaty interpretation) show that anbsp;WTO panel could properly examine member’s invocation of the national security defense, but it was emthe United States itself/em that pushed for this wording and vigorously promoted the obvious interpretation in the early GATT days. Per Bacchus: “It is clear from the negotiating history that, at the time, the United States did not view the Article XXI exception as anbsp;mechanism to excuse all restrictions on trade that might be labeled by the country imposing them as national security measures. Quite the opposite.”/p

pIn short, if GATT Article XXI and the other WTO national security exceptions were truly as broad as the U.S. now (conveniently) claims, it’d permit any and all protectionism emand/em members’ recourse to dispute settlement to adjudicate it—thus defeating the entire purpose of having not just detailed security exceptions in the agreement, but emany agreement at all/em. Perhaps tellingly, Bacchus notes that the only WTO members who’ve pulled similar stuff are Russia and Saudi Arabia. emHuh. /em/p

pAnyway, last Friday anbsp;WTO panel finally a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ0d2l0dGVyLmNvbSUyRnNjb3R0bGluY2ljb21lJTJGc3RhdHVzJTJGMTYwMTI3NTg5NzU2MjQxMTAwOSUzRnV0bV9zb3VyY2UlM0RBY3RpdmVDYW1wYWlnbiUyNnV0bV9tZWRpdW0lM0RlbWFpbCUyNnV0bV9jb250ZW50JTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2ZmJTI2dXRtX2NhbXBhaWduJTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2Zmamp;sig=Ftv742fqNRnLEHXL68EYf53ffhYh1UCPHb2AjpvkfnUnamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8116___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6OWMxODo5YzY3MDMyYmMxZTM5N2MyNTcyMTcwODkyNGIyZDk1Y2E2NjgzNGI4OWY3ZjdkNWQ3ZWRhMzNmZWE0MjRhM2JiOmg6VA rel=noopener noreferrer target=_blankadmitted/a the obvious: The U.S. steel and aluminum tariffs clearly violate various rules disciplining tariff levels and discrimination, emand/em the U.S. invocation of “national security” was bogus because, while nations emcan/em freely determine their own “security interests,” they still need to a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=FfeBECTrmh4zJ51UNSitoBHjh5yFostBazFctwkR4YsLamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8117___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6Mzg2MzozODc0MTY4N2ZhMmRlMGVjZWI4OTQ3OWM1NWUzZTdmMjI2NDIwM2E4N2QyYzcwMmU0ZDk3YWE3ZTQzNzEwZDhjOmg6VA rel=noopener noreferrer target=_blankabide by Article XXI’s express conditions/a about when and where security‐​related protectionism wouldn’t run afoul of the rules (wonky details a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=46Re2hV8szreJ3n8tBZfiw1WK3q39wmCna6faF5oQPHzamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8118___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MWRmMTo2MmU2NjU0MmQwZTg3ZjFhYzMxZTAzMjhhYmE1ZWU5NTU5ZTdjYzY1ZTc1OGI2ZGNlNDVhNmVhN2JmMDdiYWFkOmg6VA rel=noopener noreferrer target=_blankhere/a). Instead of accepting the decision, the Biden administration threw anbsp;fit and immediately a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ1c3RyLmdvdiUyRmFib3V0LXVzJTJGcG9saWN5LW9mZmljZXMlMkZwcmVzcy1vZmZpY2UlMkZwcmVzcy1yZWxlYXNlcyUyRjIwMjIlMkZkZWNlbWJlciUyRnN0YXRlbWVudC11c3RyLXNwb2tlc3BlcnNvbi1hZGFtLWhvZGdlJTNGdXRtX3NvdXJjZSUzREFjdGl2ZUNhbXBhaWduJTI2dXRtX21lZGl1bSUzRGVtYWlsJTI2dXRtX2NvbnRlbnQlM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmYlMjZ1dG1fY2FtcGFpZ24lM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmY=amp;sig=4exsXw9mPL1qVAKEtP4SL6bbCW5Sx4zmtGo6kGt2zb8Yamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8119___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6ODE4MDo1OTZiNzNhM2U0NTg5ZjAyYWZiNzcyODAxMDIwOGZkZjE0OWYzZDcyZTM2ZDhlODY5MmQzZTNiYTc1MDJjNzc1Omg6VA rel=noopener noreferrer target=_blankresponded/a that the United States:/p

ulli“strongly rejects the flawed interpretation and conclusions” in the panel reports;/li
/ul

/div

,


div class=fs-sm


ulli“has held the clear and unequivocal position, for over 70nbsp;years, that issues of national security cannot be reviewed in WTO dispute settlement and the WTO has no authority to second‐​guess the ability of anbsp;WTO Member to respond to anbsp;wide‐​range of threats to its security” [ed. note: this is false];/li
li“will not cede decision‐​making over its essential security to WTO panels” [ed. note: the panel didn’t say this]; and/li
li“do[es] not intend to remove the Section 232 duties as anbsp;result of these disputes.”/li
/ul

/div

,


div class=fs-sm


pYou couldn’t capture the Trump Doctrine any better if you tried./p

pIn anbsp;new and scathing a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=Fsu9BdMoH6UYvqjwMjv7ZVAZUAHFuNqZySX2bxZq27vMamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8120___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NGM0NTo3ZDc1OTdiMmYzZGU3MmVmZjE4NDZiOTM3MWQyMzBkMmFiNjM2OTFkODdkZjkzODUyMjgzMTNkY2E0NGEyYjFjOmg6VA rel=noopener noreferrer target=_blankblog post/a, Bacchus corrects the USTR’s legal and historical mistakes and suggests that the United States will appeal the decision “into the void” to ensure that the complaining members—including notorious trade villains and U.S. adversaries Switzerland and Norway (ha)—can’t avail themselves of the WTO’s traditional retaliatory response, further undermining the system. He also (and a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=CQErKv9UK3gnXbGkfaoMnr2NXiVnTAMj4DfWNGvz8mbfamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8121___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NzllYzo1ZDZmYWMzNDE4YjgzZDRmMjQ0ZjI0ZjI4M2IyZWFhYjg5YjUxZGJiMzMwYzZhYTA4YzgxMDE4ZDlkNTY2NzlmOmg6VA rel=noopener noreferrer target=_blankrightly/a) finds politics—not law—motivating the dangerous Biden administration moves:/p

/div

,


blockquote


div class=fs-lg


pAcceptance by WTO jurists of the contemporary and bipartisan U.S. view that the WTO has no jurisdiction on such matters, would open up anbsp;black hole of national security in which professed national security measures of all kinds could swallow up the entirety of all WTO obligations—something the United States itself warned against when the national security exception was written at the creation of the multilateral trading system in the immediate aftermath of the Second World War. This would be the end of the multilateral trading system. The Biden administration, however, seems not to be interested in this possible disastrous outcome of its intransigent position./p

pInstead, the president and his trade team are, in this as in most other aspects of their trade policymaking, looking only to the near political term in the runup to the next presidential election in 2024. Hypocritically, the Biden administration has pretended for nearly two years that, unlike the previous Trump administration, it wishes to restore the full functioning of the WTO dispute settlement system. USTR Katherine Tai has whispered sweet trade nothings into the ears of WTO members and WTO supporters in Geneva and elsewhere, and, as people sometimes tend to do, they have heard what they wanted to hear./p

/div


/blockquote

,


div class=fs-sm


pFor those wondering, Bacchus is anbsp;Democrat./p

pstrongSo Now What?/strong/p

pContrary to what you might hear on Twitter or the a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=3SqbyxPwhBsW451UCkLx5YfMk9TnBHCGAfHK8ta4DQxxamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8122___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MDdjMjo3N2IxODBiNTk5MjBhMjhhOGViYjNmMDk4Njc0NmY0ZGJlYjFjNjAxYTlmZjJlN2U1MmQ2YzRlYjViZDFlNTg1Omg6VA rel=noopener noreferrer target=_blankemNew York Times/em’ opinion page/a, the issues before us today—on China, Russia, climate change, and so on—are neither unique to our age nor unaddressed by global trade rules. As Inbsp;a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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;sig=DeYkwHCN5YLUB2R9oEZv2sBQHXUXjNEofUyXjvLw8PH5amp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8123___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6ODQzNjphZjc2ZDc3ZGRlZGRlMmU5NDlhNTNiYjdiOTY3M2JlMTcxM2U5M2YyZjgzMmYwY2QzY2IxNzI0NmM5ZTQxNzJmOmg6VA rel=noopener noreferrer target=_blanktaught/a college students years before Trump became president, nations and the WTO’s adjudicators have long grappled with how to balance open and non‐​discriminatory trade with national sovereignty and security, domestic regulation, cultural differences, foreign policy, and—yes—even domestic politics. The GATT and now WTO agreements deal with a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=J25mGvP6joygkpS8JKSJbU2omk4oYy4rRYVFmWQyZB4yamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8124___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NGM5NTo4ZTcyZmZjOTIwNDgxYTM0MjVkMTIyZmEwMGM1OTE0YzAwNDBlY2M4ZjFiOTU4MjY0NGJjNzUzYzZlN2RhOWYwOmg6VA rel=noopener noreferrer target=_blankthese very things/a in nuanced ways, and members occasionally renegotiate their terms or even refuse to comply with discrete rulings. Throughout it all, however, they’ve recognized the overall economic and geopolitical value of the system, publicly vowed to maintain it, and accepted the costs of their occasional disagreement (see, e.g., past U.S. a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZwb2xpY3ljb21tb25zLm5ldCUyRmFydGlmYWN0cyUyRjEzMTczNjUlMkZyZXR1cm4tb2YtdGhlLXRyYWRlLWVuZm9yY2VtZW50LWNhbmFyZCUyRjE5MjA2NTUlMkYlM0Z1dG1fc291cmNlJTNEQWN0aXZlQ2FtcGFpZ24lMjZ1dG1fbWVkaXVtJTNEZW1haWwlMjZ1dG1fY29udGVudCUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZiUyNnV0bV9jYW1wYWlnbiUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZg==amp;sig=3hWGQR81tXLKthC5wxs3aivtGXk7Z7eKLWWsReu3AeuMamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8125___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6N2I1NTphODJlODlkZjhlYzY2YThhYzAxOTdmMmZiY2VkYzY5YzRhNDYwMGM1MDlmZWExMmMyODVhNGNmNTllZWI4N2Q0Omg6VA rel=noopener noreferrer target=_blanknoncompliance/a on cotton subsidies or internet gambling)./p

pThe United States no longer does./p

pTo be clear, this does emnot/em mean I’m revising my a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ0aGVkaXNwYXRjaC5jb20lMkZuZXdzbGV0dGVyJTJGY2FwaXRvbGlzbSUyRml0cy10aGUtZW5kLW9mLWdsb2JhbGl6YXRpb24tYXMtd2UtOTc0JTJGJTNGdXRtX3NvdXJjZSUzREFjdGl2ZUNhbXBhaWduJTI2dXRtX21lZGl1bSUzRGVtYWlsJTI2dXRtX2NvbnRlbnQlM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmYlMjZ1dG1fY2FtcGFpZ24lM0REb25hbGQlMkJUcnVtcCUyQlN0YWdnZXJlZCUyQnRoZSUyQkdsb2JhbCUyQlRyYWRpbmclMkJTeXN0ZW0lMkIlMkJKb2UlMkJCaWRlbiUyQk1pZ2h0JTJCRmluaXNoJTJCSXQlMkJPZmY=amp;sig=BC86GSZg9V31RehnMNPPVDChWW2WsM2i7vRGSimGq2CFamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8126___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6Mzc3Yjo1MTE5N2E2M2ZmYjc1OTI0MWE0NzNhMDIyOWM5Y2Y1ZTEyMmI0ZWY3ZTIzMjVkMmYwNWZkNzFjYTI4NWNhMThmOmg6VA rel=noopener noreferrer target=_blankoptimistic conclusions/a about the overhyped “death of globalization”—there remain plenty of reasons to believe that world trade will continue apace (albeit differently). But Inbsp;emdo/em increasingly worry that the future of globalization, for the next several years at least, could be lacking two of its longstanding pillars—the WTO emand/em the United States. Indeed, it’s not as if the Biden administration’s disregard for trade rules is limited to steel tariffs. Just last week, for example, we learned that an independent panel composed under anbsp;different trade agreement (the NAFTA‐​replacing U.S.-Mexico-Canada Agreement) a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ0LmNvJTJGbUx4VEIxNFdCUiUzRnV0bV9zb3VyY2UlM0RBY3RpdmVDYW1wYWlnbiUyNnV0bV9tZWRpdW0lM0RlbWFpbCUyNnV0bV9jb250ZW50JTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2ZmJTI2dXRtX2NhbXBhaWduJTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2Zmamp;sig=Ea1UWebSsfsfmw4RDCPrsNn7sawSDsUApkBoHhhGbrPmamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8127___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6YmViNDo0NDZiZjk0NWNiY2RiMDE3MzYxZmI2MjFlMjQyNjc3ZTYyYTNjNDYzZGNmYWJiYzRiMzUxODE0MzEyNGQ3YjQzOmg6VA rel=noopener noreferrer target=_blankhad ruled/a against the Biden administration’s protectionist interpretation of already‐​protectionist “rules of origin” governing North American automotive trade. And as Inbsp;and a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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;sig=3Nwg9ukFXJXG4sJiNRBV6Ym56Y8cydLXmQzWVYw1sTFLamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8128___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6YzZlYTowZjQyNDMyODAwNjRlNWZjNDNmOTU1OWQ0MWUwOWJlNTUxZjIyNDlkZWE4ZGUzNjVkNTcxOWFiZjczNDQ0YWNlOmg6VA rel=noopener noreferrer target=_blankmany others/a have noted (and much to the chagrin of Europe, Japan, South Korea, and other U.S. allies), the Inflation Reduction Act contains all sorts of discriminatory industrial subsidies that clearly violate WTO rules. Biden’s U.S. trade representative lauds this as anbsp;a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=GBcsUXYRavF9nPF8uesSNEbrnrwYKh1Pus1F89djzTBRamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8129___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MjA1YTpkYzA1NjdlMDRhMjViYmQ0ZTk5YzEyZmNjNWU1ZjAzOTdhYWI4M2ZmZjZmMTk2OTQ3NGViYTMyYTMxNGNjNGZkOmg6VA rel=noopener noreferrer target=_blankfeature/a, a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=2dBfbgkUyppnM59LijgwGjZeAJBtvX8BMccCyLNtjBenamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8130___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6N2QwMzo5NWVjMGVjMmRhOTE2YjU4MTRjZGUwMDRlY2NmMjYxMTU3ZWFhNTU5YmVkNzE2Y2M2N2Q2MGFhOTUzNWI5NjVlOmg6VA rel=noopener noreferrer target=_blanknot an unwelcome‐​but‐​necessary side effect/a, of Biden economic policy (other Biden officials a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=BxBaBDknPHvULpVYoDrsHb5Qpv5ptWrU5rtAEW3YCDrDamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8131___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NGE4OToyY2E3ODNiMTJlNmYyYjc3NjQyNGU3ODY0ZmJkYmQyOGE2MDIzOWVmZmI3YzNkODhlNDhlYTFhOThlZDRmYzAyOmg6VA rel=noopener noreferrer target=_blankdo too/a), and it’s something U.S. protectionists have cheered as a “a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZwcm9zcGVyb3VzYW1lcmljYS5vcmclMkZpbmZsYXRpb24tcmVkdWN0aW9uLWFjdC1rbmlmZXMtdGhlLW11bHRpbGF0ZXJhbC10cmFkaW5nLXN5c3RlbS1oZXJlcy13aGF0LXVzdHItbmVlZHMtdG8tZG8lMkYlM0Z1dG1fc291cmNlJTNEQWN0aXZlQ2FtcGFpZ24lMjZ1dG1fbWVkaXVtJTNEZW1haWwlMjZ1dG1fY29udGVudCUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZiUyNnV0bV9jYW1wYWlnbiUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZg==amp;sig=Ev6RhEYtGkt5zVw391TJh4DpqYknHgFC6DmDcc7MJ8M2amp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8132___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6MTY4NTplOWFjMjNhMWE5N2YxMjEwYWNjNzE3ZGNmYWQ3N2EyNzBmYWQwOTY5NDVmMWJmMzdkZGYzMTI4YWI1ODMxZGQ5Omg6VA rel=noopener noreferrer target=_blankknife/a” to the multilateral trading system. Last week, the administration twisted that knife./p

pWhether other countries follow the U.S. lead remains to be seen. But the odds are higher today than they were six months or even anbsp;week ago./p

pThere’s also the risk that Biden’s isolationist approach will extend beyond discrete policies like steel tariffs or EV subsidies to bigger and more important international initiatives that the United States is trying to spearhead, including on China and Russia. As Tufts University’s Dan Drezner a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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;sig=4DJiAyqoxkqBzsRE6QriSF3KHCdAfSCjZ1RYXK38rZ1Lamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8133___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6Mjg2YjozMmZhMWRhZDc2N2E4NTllZWFjODM1NGMzODM2N2YyMzVjMDc5MDEwNDQzOGFjZjRkMGJlNmVlOGViYzllMGZlOmg6VA rel=noopener noreferrer target=_blanknoted/a anbsp;couple days ago:/p

/div

,


blockquote


div class=fs-lg


pThe Biden administration simultaneously wants to claim that “America is back” from the bad old days of the Trump administration while implementing an awful lot of trade restrictions that target U.S. allies. The inherent tension between these two aims is not going to go away — which means that, from time to time, Inbsp;will have to remind readers about the logical hole at the center of Biden’s grand strategy. Or as Brad DeLong recently explained to the Financial Times, “The U.S. is now an anti‐​globalization outlier.’”/p

/div


/blockquote

,


div class=fs-sm


pBeing that outlier means not just losing out on trade’s proven economic benefits, but also being anbsp;non‐​participant or backbencher in whatever spaghetti bowl of new international agreements that supplements or supplants the WTO. (Much to China’s pleasure.) As foreign policy expert W.R. Mead a href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ0LmNvJTJGRmxldDZrMXZlNCUzRnV0bV9zb3VyY2UlM0RBY3RpdmVDYW1wYWlnbiUyNnV0bV9tZWRpdW0lM0RlbWFpbCUyNnV0bV9jb250ZW50JTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2ZmJTI2dXRtX2NhbXBhaWduJTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2Zmamp;sig=XaCXM7ikNdDputj4y93TG831RX6VQscqFRZpeBC4BiPamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8134___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6ZTk0Yjo4Njg2ZDQwYWNlMzczZTc2OWU1MmE4YzE4ZTIzYTVmN2M3ZTRiNGIzODQyYmFlYjk4ZjJiZTE0OTVkNWRmN2Q3Omg6VA rel=noopener noreferrer target=_blanknoted/a back in May, moreover, “the promotion of free trade has been the most powerful tool for American diplomacy since World War II.” And since then, the WTO has been at the center of that approach./p

pMaybe abandoning it makes for good politics in the Rust Belt, but at what cost?/p

pstrongChart(s) of the Week/strong/p

pa href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=EZiFYbRL9wJHLaAT3u7a453KeZbNWxfTTD3BzHmyj77kamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8135___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NDNiMDpiNWFkYTE5Nzk1NzhhMDE4NWZjYmY5ZTg5OGY1MjdmNmY3ZjEzZGE5N2Q3MzU4OGViMWQwM2Q5OWM4NTUzYWRiOmg6VA rel=noopener noreferrer target=_blankChina property bubbles?/a/p

/div

,




figure class=figure responsive-embed-no-margin-wrapper
div class=figure__media






img loading=lazy src=/sites/cato.org/files/styles/pubs_2x/public/2022-12/incicome12-14-22-img-3.jpg?itok=JvWfSph0 width=560 height=497 alt=incicome12-14-22-img-3.jpg class=image-style-pubs-2x component-image /






/div
/figure

,


div class=fs-sm


pa href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ0d2l0dGVyLmNvbSUyRkx1Y2lhbl9DZXJuYXQlMkZzdGF0dXMlMkYxNjAyMTAyNjgwNjYyNDU4MzcwJTNGcyUzRDIwJTI2dCUzRG5pYjM1QlU0N1NPcjdnMzBZc3VjbVElMjZ1dG1fc291cmNlJTNEQWN0aXZlQ2FtcGFpZ24lMjZ1dG1fbWVkaXVtJTNEZW1haWwlMjZ1dG1fY29udGVudCUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZiUyNnV0bV9jYW1wYWlnbiUzRERvbmFsZCUyQlRydW1wJTJCU3RhZ2dlcmVkJTJCdGhlJTJCR2xvYmFsJTJCVHJhZGluZyUyQlN5c3RlbSUyQiUyQkpvZSUyQkJpZGVuJTJCTWlnaHQlMkJGaW5pc2glMkJJdCUyQk9mZg==amp;sig=ASYvBRjr6BKEZgrDrLL7dMEKaHNVJBH7kKMpYSW523msamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8136___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6Nzk1ODozYTZjMmNjNDdmNDg5OTIxNDE3MjNkYTBiMjE4MzRjYzM1NmJlMDIzYzBhMjNkMTc5NWFmOWFlZTg1MzBmNDJlOmg6VA rel=noopener noreferrer target=_blank“Manufacturing” jobs probably aren’t what you think:/a/p

/div

,




figure class=figure responsive-embed-no-margin-wrapper
div class=figure__media






img loading=lazy src=/sites/cato.org/files/styles/pubs_2x/public/2022-12/incicome12-14-22-img-4.jpg?itok=8iEN8h91 width=560 height=333 alt=incicome12-14-22-img-4.jpg class=image-style-pubs-2x component-image /






/div
/figure

,


div class=fs-sm


pa href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=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amp;sig=8xETT8LvSRm9F6VkLTvKemHNKUedLTDRr41FxnS4PACNamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8137___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NGI4Yzo3ODE4YTRmMjE1YjlhYTBjZWQwOWVkNmZmZDdmNzdlNjA4YTNmYjliZDA5ZTM3OTE5NzU1N2ZiNmI0NzdjNDA3Omg6VA rel=noopener noreferrer target=_blank“Turning it into anbsp;genuine Chinese aircraft would take well over anbsp;decade and many billions of dollars.”/a/p

/div

,




figure class=figure responsive-embed-no-margin-wrapper
div class=figure__media






img loading=lazy src=/sites/cato.org/files/styles/pubs_2x/public/2022-12/incicome12-14-22-img-5.jpg?itok=aP0QqfZ7 width=560 height=489 alt=incicome12-14-22-img-5.jpg class=image-style-pubs-2x component-image /






/div
/figure

,


div class=fs-sm


pa href=https://url.avanan.click/v2/___https://thedispatch.lt.acemlna.com/Prod/link-tracker?redirectUrl=aHR0cHMlM0ElMkYlMkZ0LmNvJTJGT0ZmckplMXI4SSUzRnV0bV9zb3VyY2UlM0RBY3RpdmVDYW1wYWlnbiUyNnV0bV9tZWRpdW0lM0RlbWFpbCUyNnV0bV9jb250ZW50JTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2ZmJTI2dXRtX2NhbXBhaWduJTNERG9uYWxkJTJCVHJ1bXAlMkJTdGFnZ2VyZWQlMkJ0aGUlMkJHbG9iYWwlMkJUcmFkaW5nJTJCU3lzdGVtJTJCJTJCSm9lJTJCQmlkZW4lMkJNaWdodCUyQkZpbmlzaCUyQkl0JTJCT2Zmamp;sig=EJckoAbYW6m2Z2zjd5wy9kuzeYqVSuHf4qocHrq1tF1qamp;iat=1671042751amp;a=%7C%7C651308815%7C%7Camp;account=thedispatch%2Eactivehosted%2Ecomamp;email=JfuohNenCoMqJ%2FRx9lEjM8PHscJHbbOnxyOvPlnI2kE%3Damp;s=538ef4669d5a9bfef4e2d943611ed1aeamp;i=262A317A5A8138___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjJjZTE2Y2Y3MmJkNzExYWQxZWJhYzVlYzQ0ZTZjNTc0OjY6NDllMjpiNjE4N2I2MDM5MjBhMzdlZGEwZTNlYTkwNDJmYzEzNTFhZmIxYjlhODQ1MmEyNTlmMzRkZjJmYWJiOGVlNGM0Omg6VA rel=noopener noreferrer target=_blankReglobalization:/a/p

/div

,




figure class=figure responsive-embed-no-margin-wrapper
div class=figure__media






img loading=lazy src=/sites/cato.org/files/styles/pubs_2x/public/2022-12/incicome12-14-22-img-6.jpg?itok=jdnulMyA width=560 height=814 alt=incicome12-14-22-img-6.jpg class=image-style-pubs-2x component-image /






/div
/figure