We can use this as an initial document for meeting notes and updates

We can use this as an initial document for meeting notes and
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Stakeholder: World Trade Organization (WTO)
–
Mission Brief
Situation: Trade War (US tariff on Chinese products and vice
versa)
You as an agent of the World Trade Organization need to
address the following questions:
Who are our allies and adversaries in the debate
The WTO has no allies or adversaries, as it seeks to mediate
trade and trade disputes among the international community. In
the debate, the WTO seeks to create a peaceful de-escalation of
the trade war between the United States and China with German
assistance. Brandon
What statements could other stakeholders have
Explain the mission of the WTO. - Valeria
The World Trade Organization (WTO) is the only global
international organization dealing with the rules of trade
between nations. At its heart are the WTO agreements,

negotiated and signed by the bulk of the world’s trading nations
and ratified in their parliaments. The goal is to ensure that trade
flows as smoothly, predictably and freely as possible.
https://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm
https://www.wto.org/english/thewto_e/whatis_e/what_stand_for
_e.htm
How does the Trade War contradict the mission of the WTO?
-Harshdeep
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds543_e.
htm
htm
htm
htm
htm
htm
htm

When and Why was the WTO established? What is its purpose?
- Tessa
The WTO was established on 1 January 1995.
The WTO was born out of the General Agreement on Tariffs and
Trade (GATT), which was found in 1947. Before World War II
(WWII) there was no forum for global trade negotiations or
procedures for settling disputes. As a consequence there was a
desire for peace and security after this war, so the GATT was
established. This agreement was part of the Bretton Woods
system, including the World Bank and the International
Monetary Fund (IMF). The GATT mainly dealt with trade in
goods and in 1995 the WTO replaced GATT as a global trading
system. The WTO also covered trade in services and intellectual
property.
https://www.investopedia.com/investing/what-is-the-world-
trade-organization/
https://www.wto.org/english/thewto_e/history_e/history_e.htm
The purpose of the WTO is to open trade for the benefit of all
and to ensure that global trade commences freely and smoothly.
https://www.investopedia.com/investing/what-is-the-world-
trade-organization/

When did the Trade War initiate? How and why?
-Harshdeep
In January of 2018, the United States began imposing tariffs on
imported goods in an effort to support local businesses and the
national economy. The belief was that consumers would “buy
American” if foreign goods became more expensive. (
https://www.bbc.com/news/business-44529600
) A misunderstanding between the two countries about the
other’s motives has led to tit-for-tat tariff retaliations with
neither side willing to budge. President Trump has alleged that
there have been "unfair transfers of American technology and
intellectual property to China" and that U.S. firms have had
restricted access to the Chinese market. Mr. Wang Huiyang,
president of the Centre for China and Globalisation, defended
China stating, “All the major US companies are in China. Some
are even bigger here than they are in the US. You can't say that
is not a success.” (
) To date, more than $250 billion worth of tariffs have been
imposed by the U.S. on Chinese goods, and $110 billion worth
of tariffs have been imposed by China on U.S. goods. (
)
https://www.cfr.org/blog/us-china-trade-war-how-we-got-here
https://www.bloomberg.com/news/articles/2019-01-30/u-s-
china-trade-war-timeline-what-s-happened-and-what-s-next

How does the WTO view the situation regarding the trade war
between the US and China? -Rasmus
T
http://tass.com/politics/1026704
Look for other countries
https://www.theguardian.com/business/2018/sep/19/wto-head-
offers-to-mediate-between-china-and-us-over-trade-war
https://foreignpolicy.com/2018/10/19/the-trade-war-has-
claimed-its-first-victim/
http://www.chinadaily.com.cn/a/201808/28/WS5b8491eca310ad
d14f3880fc.html
What capabilities or tools does the WTO have to mitigate a
trade war?
https://www.cato.org/publications/policy-analysis/disciplining-
chinas-trade-practices-wto-how-wto-complaints-can-help
https://www.ft.com/content/84d54206-30ac-11e8-ac48-
10c6fdc22f03
The WTO insists that it is not an international court, with its

focus on settling disputes through negotiations. WTO can
impose trade sanctions on countries that ignore its rulings, but
it provides little detail on how such sanctions can be applied.
https://news.cgtn.com/news/78417a4e326b7a6333566d54/share_
p.html
Has the WTO intervened in other trade wars? Nick
https://www.nytimes.com/2003/11/11/business/us-tariffs-on-
steel-are-illegal-world-trade-organization-says.html
The 2002 Steel Tariff
https://www.history.com/news/7-trade-wars-boston-tea-party-
smoot-hawley
The 1993 Banana Wars
Does the WTO always promote free trade? Under what
circumstances would they promote trade restrictions? -
Harshdeep
For the most part, the WTO does promote free trade. “[It] is

sometimes described as a “free trade” institution, but that is not
entirely accurate. The system does allow tariffs and, in limited
circumstances, other forms of protection. More accurately, it is
a system of rules dedicated to open, fair and undistorted
competition.” (
https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.ht
m
) Its most-favored nation (MFN) principle states that countries
cannot discriminate between their trading partners. “In general,
MFN means that every time a country lowers a trade barrier or
opens up a market, it has to do so for the same goods or services
from all its trading partners — whether rich or poor, weak or
strong.” (
m
) Nevertheless, there exist circumstances under which the WTO
would promote trade restrictions. For example, it permits trade
restrictions that promote the protection of the environment. The
WTO grants every member nation the freedom to establish its
own level of protection as it deems appropriate. Still, it
demands that members remain consistent with their embargos.
“If a country bans the importation of asbestos from another, for
example, it must ban asbestos imports from all countries, as
well as banning domestic sales.” (
https://www.wto.org/english/tratop_e/envir_e/bkgrnd_climate_e
.pdf
) Further, a nation can raise trade barriers against certain goods
if it believes that specific nations are trading those goods
unfairly. It can also allow special access to its markets to
developing nations, and it can set up an FTA that allows for
goods to be traded only within a specific group, thereby
discriminating against goods from outside. (
m
) When there exists a “threat to national security,” the WTO’s
free trade rules do not apply. (

p.html
)
m
“Some exceptions are allowed. For example, countries can set
up a free trade agreement that applies only to goods traded
within the group — discriminating against goods from outside.
Or they can give developing countries special access to their
markets. Or a country can raise barriers against products that
are considered to be traded unfairly from specific countries.
And in services, countries are allowed, in limited
circumstances, to discriminate. But the agreements only permit
these exceptions under strict conditions. In general, MFN means
that every time a country lowers a trade barrier or opens up a
market, it has to do so for the same goods or services from all
its trading partners — whether rich or poor, weak or strong.”
“The WTO is sometimes described as a “free trade” institution,
but that is not entirely accurate. The system does allow tariffs
and, in limited circumstances, other forms of protection. More
accurately, it is a system of rules dedicated to open, fair and
undistorted competition.”
https://www.wto.org/english/tratop_e/envir_e/bkgrnd_climate_e
.pdf
“The WTO rule book permits governments to restrict trade when
the objective is protecting the environment. The legality of such
restrictive measures depends on a number of conditions

including whether they constitute justifiable discrimination.
These measures should not constitute disguised protectionism.”
“Every member is free to determine its appropriate level of
protection but must do so in a coherent manner. If a country
bans the importation of asbestos from another, for example, it
must ban asbestos imports from all countries, as well as banning
domestic sales.”
the WTO has a term, ratified by all of its members, that states
its rules on free trade do not apply when there is a “threat to
national security,” without going into further details on what
that constitutes.
p.html
What actions do you think the WTO will take to address the
US/China trade war? - Brandon
https://www.nytimes.com/2018/09/24/opinion/us-china-trade-
war-tariffs-wto.html
The WTO must urge the United States to stop blocking the
appointment of new judges to the WTO’s Appellate Body,
which primarily dictates trade disputes.
The United States has always had the rare privilege of having at
least one American on the Appellate Body, and as such, should
consider stopping the belief that the US loses trade disputes due

to a lack of American presence in the Body
https://www.reuters.com/article/us-usa-trade-wto/u-s-blocks-
wto-judge-reappointment-as-dispute-settlement-crisis-looms-
idUSKCN1LC19O
Currently, there are only three judges, the minimum amount for
the Appellate Body to function, whereas there are normally
seven.
If the US could agree to the appointment of four new,
international judges independent of both countries within the
summer, the WTO Appellate Body can more effectively research
and determine a course of action and desired outcome for the
trade war
https://www.reuters.com/article/us-usa-trade-wto/trumps-tariffs-
head-for-a-legal-minefield-idUSKCN1GS1KL
The US must look to refrain from circumventing and breaking
WTO policies by invoking the “national security” clause under
Section 232 of the 1962 U.S Trade Expansion Act.
In this regard, the WTO’s ‘General Agreement on Tariffs and
Trade’ allows an exemption from its rules if a country declares
its action towards “national security.” Donald Trump recently
enacted this clause to levy 25% tariffs on US steel imports and
10% on aluminum without informing the WTO
As such, the WTO urges the United States to discontinue its

abuse of the “National Security” clause and look to impose
tariff and trade regulation solely through the WTO and its
Appellate Body. The WTO will thus look to de-escalate the
former acts
As a delegate of the WTO, what would you propose be done
about the trade war between the US and China? Niannu
What are the issues behind the war? - Nick
https://www.scmp.com/news/china/diplomacy/article/2174419/c
hina-and-us-hurl-claims-hypocrisy-each-other-trade-war
US President Donald Trump has outraged US trading partners
by erecting a tariff wall against importers of steel and aluminum
- justified by US national security concerns - and has hit cinese
goods with huge tariffs over accusations of stealing US
intellectual property
https://www.bbc.com/news/world-43512098
US President Donald Trump reckons trade wars are "good" and
easy. He's not afraid to raise tariffs.
Mr Trump also wants to cut the trade deficit with China - a
country he has accused of unfair trade practices since before he
became president.

Mr Trump made a big point on the campaign trail about cutting
the country's trade deficits…. He's convinced it hurts US
manufacturing, and has said time and time again on the stump
and on Twitter that the US must do more to tackle them.
The Trump administration claims the US relies too much on
other countries for its metals, and that it couldn't make enough
weapons or vehicles using its own industry if a war broke out.
The world's second-largest economy has taxed US agricultural
and industrial products, from soybeans, pork and cotton to
aeroplanes, cars and steel pipes.
The US launched an investigation into Chinese trade policies in
2017. It imposed tariffs on billions of dollars worth of Chinese
products last year, and Beijing retaliated in kind.
Tariffs, in theory, make US-made products cheaper than
imported ones, and encourage consumers to buy American.
Beijing hit back with tariffs on $110bn of US goods, accusing
the US of starting "the largest trade war in economic history".
What are the 2 countries trying to accomplish by imposing

barriers to trade? - Valeria
US
U.S. President Donald Trump said trade wars were “good, and
easy to win” in March as he started a dispute with China that
has seen its administration impose tariffs on steel, aluminum
and various Chinese products.
Figures on U.S.-China trade put China’s disadvantages into
sharp relief. According to UN figures, the United States
depends on China to buy only some 8% of all U.S. exports,
whereas China depends on the United States to buy almost one-
quarter of all its exports. U.S. goods and services constitute
only some 7.3% of all Chinese imports, whereas Chinese
products account for over 21% of all American imports.
What these figures say is that a cession of trade would hurt
China’s real economy much more than it would the U.S.
economy. And indeed, the Standard and Charter Bank of Hong
Kong, clearly close to the situation from the Asian side,
estimates that the existing 10% tariffs imposed by Trump will
slow Chinese economic growth some 0.4 percentage points next
year, and if Trump raises the tariffs to 25% on January 1 as
planned, it will cut China’s real growth pace 0.6 percentage
points, not a small disruption even an economy growing 6-6.5%
a year. Meanwhile, a consensus of economists here in the States
estimates that the tariffs imposed by China on U.S. products
will slow this economy a mere 0.1-0.2 percentage points.
These figures also say that China will have an increasingly hard
time matching the U.S. tariffs dollar-for-dollar, as Beijing has
tried to do so far in this dispute. Indeed, the problem has
already arisen. The recently announced 10% tariffs will fall on

some $200 billion of Chinese products imported into this
country. China has countered with 5-10% tariffs on $60 billion
worth of American products entering that country. This latest
raft of Chinese tariff making has brought the total on which
China has raised duties to $110 billion, awfully close to the
$150 billion total that country imports from the United States.
Beijing is loath to burden the other $40 billion of U.S. imports
because they consist of semiconductors and other components
essential to China’s huge output of assembled electronics.
https://www.forbes.com/sites/miltonezrati/2018/10/03/trade-
war-from-the-chinese-side/#625688b26e10
China
The ECB study simulates a 10 percent U.S. tariff on all imports
and an equivalent retaliation from other countries. It suggests
the United States would bear the brunt of diminished trade and
of damage to consumer and investor confidence.
“Estimation results suggest that the United States’ net export
position would deteriorate substantially,” the ECB said in the
study. “In this model, U.S. firms also invest less and hire fewer
workers, which amplifies the negative effect.”
The ECB estimates U.S. growth would be cut by more than 2
percentage points. The International Monetary Fund currently
expects the U.S. economy to expand by 2.9 percent this year and
2.7 percent the next.
By contrast, China would gain by exporting more to third

countries where U.S. goods are subject to tariffs, although that
slight gain would be temporary and partly offset by a negative
effect on confidence.
The ECB model is purely theoretical; it does not replicate actual
trade conditions. The United States has imposed tariffs on $200
billion of Chinese goods and China has retaliated with tariffs on
$60 billion of U.S. goods.
https://www.reuters.com/article/us-usa-trade-ecb/u-s-has-most-
to-lose-from-trade-war-china-would-benefit-ecb-
idUSKCN1M60XB
Will this tit for tat strategy work? - Nick
https://www.livemint.com/Politics/78YKGldxbKUlNTFqYEB1O
P/Top-5-infamous-trade-wars-in-history.html
The Banana Wars of 1933
To restrict import of Bananas to its colonies in Africa and
Caribbean, Europe imposed heavy tariffs on import of Latin
American bananas in 1993.
Since the US companies own most of the banana farms in Latin
America, the US filed eight separate complaints in the WTO
After filing eight complaints with the World Trade
Organization, the European Union, in 2009, agreed to gradually

ease the tariffs, and, in 2012, the banana war finally ended
Tactic worked, war eventually ended peacefully
https://www.history.com/news/7-trade-wars-boston-tea-party-
smoot-hawley
The Smoot-Hawley Act of 1930
President Herbert Hoover originally set out to deal with a farm
crisis during the early years of the Great Depression, proposing
tariffs on agricultural imports. But Senators Reed Smoot and
Willis C. Hawley offered their own legislation, and added a
slew of industrial tariffs. The world responded with tariffs on
U.S. exports, adding more strain to the already-devastated
economy.
Considered a disaster by many...It contributed to U.S. exports
falling by 61 percent in 1933, and stalled economic recovery
during the Depression.
Tactic did not work, harmed both parties
The Chicken Tariff War of the 1960s
With the rise of mass-produced, factory chicken farming in
America, the world responded by buying up cheaper U.S.

poultry, and chicken imports in Europe soared. That didn't sit
well with France and West Germany, who imposed tariffs on the
birds, leading to big losses in the U.S. poultry industry.
The United States, led by President Lyndon Johnson, fought
back with a 25 percent tax on “light trucks,” including
Volkswagen buses, French brandy, potato starch and dextrin.
The Japanese auto industry also took a big hit from the tax,
which remains on light trucks. Some brands, including Toyota
and Isuzu, have found loopholes, such as erecting assembly
plants on U.S. territory, to circumvent them.
Tactic did not work, harmed both parties
Should the WTO intervene or will the US and/or Chinese
governments alter their perspectives regarding trade
restrictions?
Yes
Global trade, meanwhile, could fall by up to 3 percent relative
to the baseline.
The Trump Administration is not working, rather consciously,
fully within the framework of the World Trade Organization.
The big cases—the 301 versus China, the (coming?) 232 versus
autos—are being pursued through U.S. law, and they will be

subject to a challenge in the WTO. An alternative strategy—
challenging China in the WTO for violation of its WTO
commitments—hasn’t been the administration’s focus.
No
For understanding trade law, I rely on the work of others. A
trade war
[1]
is, among other things, a legal process—at least in the United
States. Congress has delegated a lot of authority over the
regulation of international commerce to the executive branch,
which has given the Trump Administration a lot of latitude. But
Trump and his team are still working within the
framework
of U.S. trade law (“
232
s”, “
301
s,” “
201
s,” etc.).
https://www.cfr.org/blog/us-china-trade-war-how-we-got-here
https://www.scmp.com/news/china/diplomacy-
defence/article/2155640/china-us-trade-dispute-what-role-can-
world-trade

You will need to form a vision surrounding the outcome of the
trade war and its implication to the US and Chinese economies.
In particular the role of the WTO in supporting its mission and
what actions should be taken?
https://www.imd.org/research-knowledge/articles/why-america-
would-lose-a-trade-war-with-china/
https://www.cnbc.com/2019/02/12/a-blueprint-for-trading-the-
different-trade-war-outcomes.html
https://ihsmarkit.com/solutions/us-china-trade-war-impacts.html
After creating a vision, the goal is to come up with a response
to the current situation.
How does the WTO respond to US/China trade war?
https://www.theguardian.com/business/2018/sep/19/wto-head-
offers-to-mediate-between-china-and-us-over-trade-war
What about other countries?
https://www.wto.org/english/thewto_e/whatis_e/10thi_e/10thi09
_e.htm

What is the WTO’s responsibility in protecting other countries?
https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm7_e.h
tm

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