But instead of using the WTO, the Trump administration – incredibly – is undermining it by blocking the appointment of new judges to the organization’s Dispute Settlement Body. The DSB should have seven appointed members, of whom three must be on any panel hearing a case. But because the US has consistently vetoed candidates to replace judges who have completed their terms, the DSB now has only one member, and thus can no longer function. Although the DSB certainly could be rendered more effective, it has been very useful in settling disputes and preventing trade wars. Dismantling the entire process makes no sense.
Finally, even regarding valid US concerns, there is no indication regarding what changes the Chinese government should make to satisfy the Trump administration. It is in both America’s and China’s interest that the open multilateral global trading system prosper and support economic growth worldwide. Unfortunately, there is little prospect that current American policy can achieve that goal.
Anne O. Krueger, a former World Bank chief economist and former first deputy managing director of the International Monetary Fund, is senior research professor of international economics at the School of Advanced International Studies, Johns Hopkins University, and Senior Fellow at the Center for International Development, Stanford University.