U.S. complaints over developing-country status predate the Trump administration. | Pablo Martinez Monsivais/AP Photo trade Trump ramps up attack against WTO

President Donald Trump on Friday stepped up his attack against the World Trade Organization, saying it wouldn’t recognize special treatment for wealthy economies that claim developing status.

Trump issued a memorandum accusing China and other countries with large economies of taking advantage of developing-country status at the Geneva-based organization. Developing status at the WTO generally grants a country leniency to delay or avoid compliance with certain obligations and rules.


“The WTO is BROKEN when the world’s RICHEST countries claim to be developing countries to avoid WTO rules and get special treatment. NO more!!! Today I directed the U.S. Trade Representative to take action so that countries stop CHEATING the system at the expense of the USA!“ Trump tweeted Friday.

U.S. complaints over developing-country status predate the Trump administration. The U.S. has taken particular issue with the fact that a country can “self-designate” itself as a developing economy in order to take advantage of special treatment.

In addition to China, the memorandum said wealthy economies like Brunei, Hong Kong, Kuwait, Macao, Qatar, Singapore, the United Arab Emirates, Mexico, South Korea and Turkey also wrongly claim developing status. The U.S. has "never accepted China's claim to developing-country status," the memorandum said.

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“When the wealthiest economies claim developing-country status, they harm not only other developed economies but also economies that truly require special and differential treatment,” the administration stated in the memorandum. “Such disregard for adherence to WTO rules, including the likely disregard of any future rules, cannot continue to go unchecked.“

The memorandum directs the U.S. Trade Representative’s office to “use all available means” to change the policy at the WTO. If substantial progress is not reported after 90 days, the U.S. will no longer treat as a developing country any WTO member that USTR judges to be improperly declaring itself a developing country.

The U.S. would also withdraw support for any of those countries seeking membership in the Organization for Economic Cooperation and Development.

The U.S. made a formal proposal at the WTO earlier this year that would bar countries that are members of OECD or the G-20 from being considered developing. Under that proposal, WTO members that are designated high-income economies by the World Bank and account for no less than 0.5 percent of global merchandise trade would also be ineligible for special treatment.

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