Protectionism Sabotages the WTO

Published in Takungpao
(Hong Kong) on 15 March 2009
by Jiang Shiue Han (link to originallink to original)
Translated from by Yung Ting Chang. Edited by Bridgette Blight.
Suffering from the financial storm, countries like the U.S. and those in the European Union are injecting huge amounts of bailout money into problematic industries such as finance and automobile manufacturing. Does this saving activity breach the regulations of the World Trade Organization? Does it shatter the WTO’s system? Public trust in the WTO, an international organization that economically unites 150 members, has been massively shaken by disputes and conflicts that have been caused by the financial crisis. The main reason for the plunge is the WTO’s lack of ability to halt rising protectionism among western countries.

The U.S. Treasury Department might start discussing another financing package of at least $40 billion to meet the financial needs of General Motors (G.M.) and Chrysler. Besides an injection of money, the U.S. government has also introduced a $1,500 tax credit for Americans who buy a domestic car. Japan also plans to subsidize every new digital television purchase with 20,000 Yen.

France, Germany and the U.K. also have similar bailout plans for their car industries. The German car maker Opel was spun off by its American mother company, G.M., and needs approximately 3.3 billion Euros in aid.

In addition, countries including India, Indonesia, Russia, Brazil and Argentina have raised their import duties on some products. The E.U. is considering imposing an import duty on bio diesel from America. Meanwhile, Washington is considering imposing duties on Italian drinking water and French cheese, because the E.U. restricts imports of American chicken and beef.

Does governmental aid to businesses violate the spirit of the WTO? Although that is exactly what the U.S and the E.U. are doing, most companies that are barely surviving have no other options to stay afloat.

For Korea, whose export represents more than 40 percent of GDP, the fairness of the WTO principles is crucial for their economic development. Korean trade researchers indicate that large amounts of governmental financing is against WTO regulations, according to which, a country may be sanctioned if it subsidizes a specific industry or a business and therefore causes damage to its competitors. In 2000, after receiving 6 trillion Korean Yuan of financial aid from the Korean central bank, the Korean semi-conductor Hynix has been charged countervailing duties by the U.S., Japan and the E.U. But now, in contrast, those countries are providing large-scale financial aid to their domestic industries. The WTO no longer fulfills its function of supervision and fighting against trade barriers. The system is staggering.

Protectionism is the Achilles’ heel of the WTO. The old protectionism used tools like tariffs and policy barriers. The new protectionism uses green energy and environmental considerations as its weapons. However, Obama’s economic stimulus plan involves governmental purchasing, to exclude legal challenges by other countries. Even Pascal Lamy, the director general of the WTO, has to admit the legitimacy of the measure to “Buy American”. The Americans themselves are also surprised by the leeway provided to practice protectionism without breaking any WTO regulations.

A Slap in the Face

In his speech, Lamy passionately emphasized that as long as every member can reduce tariffs by $150 billion, trade barriers can be eliminated and the world economy will greatly improve. Although his words won unanimous applause, several countries are still unwilling to cooperate. Moreover, following the financial crisis, the WTO seems unable to deal with protectionism led by western countries. Some WTO officials complained that even they need to rely on the media to know what is going on in WTO member countries. Apparently, the uncoordinated action of the U.S., the most important member of the organization, put Lamy in an awkward position.

When the economy is thriving, developed countries promote free trade to extend the world economy. When the economy is in a recession, they fend off others with protectionism. To a certain extent, those massive international organizations, including the WTO, the UN, the IMF and the World Bank, are facing similar embarrassment, since the U.S. and most developed European countries are their founders and rule setters. These organizations function efficiently when they can benefit from those developed countries. When the situation is the other way around, rarely can any organization maintain the same level of performance.

Nothing Lost for Russia as an Outsider

Some in the international media have indicated that China’s acceptance to the WTO has changed the organization’s power arrangement. Fast growing economies like India and China have impacted the developed countries-oriented WTO, which has to find a new balance among the complicated interests of its member countries. Under those circumstances, the developed countries focus on bilateral or regional free trade agreements that are more in their interest. Perhaps that also has something to do with the U.S. realizing that the WTO is not easy to manipulate anymore. In the future, bilateral and regional agreements will play a more important role in trade. In addition, regional free trade agreements will happen in the U.S., the E.U. and China.

Whether the WTO will survive or not, experts from Russia said that it is not a pity that Russia is an outsider. The Russian experts added that before Russia joins the WTO, it will be dissolved. The current WTO participants already show a preference for reinforcing bilateral and regional cooperation, which is lethal to the WTO. If an international organization wants to treat all of its members equally, some powerful regions or continents will prefer playing by their own rules to reach agreements. In the future, the rules set or practiced by these regional organizations might become common principles for all. This would be completely different from the WTO, and of a form not dominated by mainstream powers.

As global trade barriers grow in an irreversible manner, in the near future, trade conflicts in international economic and diplomatic relations will be normal. Various economies will survive the power reshuffle and set a new world order. However, before uniting those economies, what we need is to fairly open the markets and let the world achieve concordance.


保護主義令世貿受傷/ 寒江雪
2009-3-15


金融風暴下,美國、歐盟等國家和地區紛紛有意對金融、汽車等行業注入規模龐大的「救助金」,這些救助行為是否有違世界貿易組織(WTO)的規章?WTO體系是否正在發生動搖?這個擁有150多個成員的「經濟聯合國」,是一個充滿了利益的地方,在金融危機引發的各種爭吵和矛盾中,其公信力急劇下降的最重要原因就是它無力阻止西方大國的保護主義措施。

美國財政部或已開始與金融機構討論至少400億美元的融資安排,為通用汽車和克萊斯勒提供不時之需。除了給錢之外,美國還制定了購買本國汽車產品的減稅方案,為購買汽車的消費者減免1500美元稅金。日本也計劃向數字電視機購買者補助2萬日圓。


「金援」是否有違世貿精神

法國、德國和英國等也拿出了對本國汽車企業的援助方案。因受母公司——通用汽車的拖累,德國歐寶汽車公司陷入了困境,所需資金約33億歐元。

除此而外,印度、印尼、俄羅斯、巴西、阿根廷等國也調高了部分產品的進口關稅。為了報復華盛頓為美國生產商提供出口補貼,歐盟還考慮是否要對美國產生物柴油徵收進口關稅;而美國則在考慮對意大利飲用水和法國芝士徵收報復性關稅,以對抗歐盟對美國雞肉和牛肉實施的進口限令。

政府大額資金援助企業,算不算是違背WTO精神?儘管美國、歐盟等正在對本國企業正在進行大規模資金援助,但面對眼前的困難,大多數企業都在考慮生存問題,無暇顧及。

對於出口佔GDP40%以上的韓國來說,世貿規定的公正性對經濟發展至關重要。韓國貿易研究人士認為,一方面,政府的大規模金融援助違背WTO規定。如果因政府對特定產業和企業進行援助而給別國帶來損失,根據規定可能會遭到制裁。2000年,韓國半導體企業海力士從銀行得到6萬億韓圜的資金援助後,被美國、日本和歐盟徵收了補償關稅,但現在,這些國家卻在對本國企業進行大規模的資金援助。另一方面,目前WTO喪失了監督並調整貿易保護的功能, WTO體系正在動搖。

保護主義直擊WTO軟肋。老的貿易保護主義使用關稅、政策性壁壘等手段,新的貿易保護主義則用綠色能源和環保作為貿易壁壘的武器。而奧巴馬的刺激經濟計劃由於屬政府採購範疇,在WTO中被「合法地」排除了別國申訴的可能。就連拉米也不得不承認,「買美國貨」的做法符合WTO的規則。美國人自己也驚嘆地說:「在沒有公然違背協定的情況下,WTO框架內提升保護主義的餘地竟如此之大。」


美國「拆台」令世貿尷尬

WTO總幹事拉米,這位與GATT/WTO同齡的法國人,曾在演講台上熱情地強調,各成員只需共同削減1500億美元的關稅,貿易壁壘就可以從此消除,世界經濟將發生「質的飛躍」。雖然拉米的演講贏得了熱烈的掌聲,但時至今日,多國對其計劃仍然不願合作,而在金融危機後由美歐等發達國家率先掀起的貿易保護風潮令WTO顯得有些手忙腳亂,力不從心,其官員們甚至抱怨,他們現在不得不靠媒體報道才能及時了解形勢變化。而這個組織中最重要成員──美國的拆台,則讓拉米無比尷尬。

在經濟繁榮時,發達國家通過鼓吹自由貿易實現全球性經濟擴張,而在經濟遇到困難時,他們就拿起保護主義的旗幟保護自己。從某種程度上說,WTO與聯合國、國際貨幣基金組織、世界銀行等重要的大型國際組織所面臨的尷尬是一樣的,這些組織都是由歐美等發達國家發起組建,並制定遊戲規則的,當這些內部充滿利益的組織有利於美國等發達國家時,它的運轉就很「高效」,否則它就可能「名存實亡」。


俄非會員卻也「不必遺憾」

有國際媒體稱,中國的加入改變了WTO的權力格局,歐盟不再是談判桌上的主角。中印等新興經濟國家的迅速崛起,讓原本由美歐主導的WTO體制的力量對比發生了重大變化,WTO必須要在錯綜複雜的利害關係中找到折中點。於是,美歐等發達國家率先將目光轉向了更加利益攸關的雙邊或區域性自由貿易協定上。這或許是美國發現WTO不再像以往那麼好操縱了。未來雙邊和地區的協商將會加強,而且,區域性的自由貿易協議將會圍繞美歐中三大核心進行。

對於WTO的存亡危機,俄羅斯專家有著更驚人的論斷:俄羅斯不必遺憾沒有加入WTO,因為在俄加入前,這個組織就將消亡。世界貿易的參與者已表現出了傾向於加強地區性合作和雙邊合作的意願,這對WTO來說是致命的。全球性組織總想用一把梳子給大家梳頭,單獨的大區域或大洲更容易就自己的遊戲規則達成協議。將來,也許這些地區組織商量好的、並得到實踐檢驗的標準將成為世界規則,那將是完全不同於WTO的形式,那裡不會有弱肉強食。

隨著全球性貿易保護壁壘的不可逆轉,在未來一段時間,貿易磨擦的不斷加劇和此起彼伏將是國際經濟外交關係的一種常態。各個經濟體將在相互極權對峙和博弈中,完成整個世界的重新布局、勢力消弭和洗牌。在一體化之前,首先需要的是市場對等開放,然後才能使世界趨於和諧。

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