Issue Tariff war erodes the WTO system and multilateral trade order

Summary

The tariff war is further eroding the WTO-based system, and there is talk of a so-called Trump Round in which Washington would set global trade rules on its own terms. China argues that US claims of fair trade and reciprocal opening ignore differences in development stage, factor endowments and comparative advantage, and that the resulting high tariffs breach the most-favoured-nation principle. With both sides digging in, prolonged negotiations could keep global economic uncertainty high. Circumvention, dumping and global overcapacity that surface during the tariff fight are becoming issues in their own right. The report calls on Korea to work with like-minded partners on these global questions, from the breakdown of the free-trade order to unfair practices and overcapacity.