Unilateral trade coercion won't fix the U.S. fentanyl crisis
Editor's note: The author is a professor at the University of International Business and Economics' School of Law. The views don't necessarily represent those of CGTN.
The multilateral trading system, embodied by the World Trade Organization (WTO), serves as the cornerstone of international trade activities, with the core mission of promoting the free flow of trade globally. WTO principles and disciplines constitute a core code of conduct for WTO members. The second Trump administration believes that fentanyl poses a severe threat to American society and wishes to have domestic challenges resolved by other countries who, under U.S. pressure, would intensify their enforcement efforts. However, such unilateral trade coercion violates WTO rules and disciplines, thus constituting the incorrect way to solve the problem.
U.S. unilateral tariff measures violate WTO rules
Firstly, they are in violation of the Most-Favored-Nation (MFN) treatment principle and tariff binding obligations. The principle of MFN treatment requires WTO members to treat like products from different members "equally" by granting preferential tariffs and other benefits to all other WTO members universally, unconditionally, immediately and without prejudice. However, the U.S. additional tariffs on Canada, Mexico, and China are clearly discriminatory in nature. Substantial tariffs on products from specific countries and exclusion of Chinese products from the tariff levels for other WTO members clearly violate the MFN treatment. Bound duty rates listed by members in their schedules of concessions are a basic commitment to other members. Members may only reduce applied tariff rates voluntarily based on top of them and are strictly prohibited from increasing them arbitrarily. However, the tariffs additional on Canada, Mexico and China clearly exceed the bound tariff rates the U.S. commits at the WTO. Such practices not only violate tariff binding obligations but also undermine the authority and effectiveness of WTO rules.