If you’ve read Five Short Blasts or have been following this blog, you’ve heard me claim that the World Trade Organization (WTO), in a stunning repudiation of its basic free trade tenets, actually enforces protectionism for two thirds of its member states. You may have been skeptical. I offer this article as proof.
Just read through the list of provisions currently under consideration in the latest round of WTO negotiations. Especially pay attention to the last one:
* New members. The new text drops the proposed grace period for the implementation of tariff cuts for recent members such as China, and changes the extra time proposed for implementation of new members to 3-4 years from 2-5 years. Thus China would have up to 14 years to implement tariff cuts, compared with 10 for other developing countries and 5 for developed members. The text retains a footnote that such new members may be able to seek further favourable treatment than that available to other developing countries.
If the WTO truly believes that everyone benefits from free trade, why are they allowing so many countries to maintain tariffs, while insisting that the U.S. eliminate all trade barriers? The answer is that the WTO doesn’t give a rat’s behind about free trade. The WTO is simply the referee of parasites lining up to feed on the U.S. economy, sucking away its life blood. It’s an organization that was set up to manage the redistribution of America’s wealth to the rest of the world.
The U.S. had better wise up soon, show the WTO the door and return to the pre-GATT (Global Agreement on Tariffs and Trade, signed in 1947, forerunner of the WTO) trade policies that built the U.S. into the world’s greatest industrial power, before we signed that asinine treaty and gave it all away.