US, China should resolve issues through WTO

NUR SULTAN (Kazakhstan), The United States (US) and China should adhere to the rule of law and resolve their disputes through the World Trade Organisation (WTO), University of Central Florida’s Professor of Global Affairs, James Bacchus, said today.

“The US has some genuine trade grievance with China and China has legitimate trade grievance with the US. They should resolve it through the WTO,” he said.

Currently, both the US and China are at the stage of commercial confrontation that could further worsen the situation and it was not good for either the US or China or the world, he said at the Astana Economic Forum 2019 here, today.

However, Bacchus, who is also the Director of the Centre for Global Economic and Environmental Opportunity, said that he did not foresee the current situation to be solved anytime soon.

“I am not optimistic of it to be resolved during the G20 Summit in Japan (next month). The two countries are too far apart,” he said, adding that he had no idea when it would be after the trade dispute between the two countries escalated further with both sides spiking tariffs.

“I have no idea (of when it will end). The (US) President (Donald Trump) is doing what he thinks will help him get re-elected. Right now he seems to think quarrelling with China will get him re-elected, I think he is wrong about that,” Bacchus opined.

Mehmet imek, Turkish politician and economist and former Deputy Prime Minister of Turkey, also believed that a real trade war would be damaging for everyone due to the amount of disruption it will cause, and as a result, the consumers would suffer.

“Trade is (the) engine of growth. There is no evidence that it destroy jobs. We know trade enhances long-term prosperity. So, protectionism cannot be good for consumers,” he said.

Both Bacchus and Mehmet who were among the four panellists at the session entitled, Trade Wars and the Emergence of New Economic Curtain for the Global Economy strongly advocated to the existing system and the need to adhere to the rule of law and that it should not be undermined.

“Rule-based system served us well, preserve it and enhance it,” said Mehmet.

Bacchus said Kazakhstan had an ideal opportunity when it hosts the 12th WTO Ministerial Meeting in 2020 to make its mark globally by rallying the developing countries’ support to continuously rely on the rule of law instead of rule of power.

“That must be done as the developing countries would suffer more with rule of power,” he said.

Source: BERNAMA (News Agency)