The United States faces a severe fentanyl crisis, and recent unilateral tariff measures aimed at addressing this issue may be exacerbating the problem rather than solving it.
US Unilateral Tariffs Violate WTO Rules
The US administration believes that fentanyl poses a significant threat to American society and seeks to have other countries, under US pressure, intensify their enforcement efforts. However, these unilateral trade coercion tactics violate the World Trade Organization (WTO) rules and disciplines.
Violation of MFN Treatment and Tariff Bindings
The US additional tariffs on Canada, Mexico, and the Chinese mainland are discriminatory and violate the Most-Favored-Nation (MFN) treatment principle. This principle requires WTO members to treat like products from different members equally by granting preferential tariffs and benefits universally. The imposed tariffs exceed the bound tariff rates committed by the US, undermining the WTO's authority.
Challenges in Justifying with WTO Exceptions
While the US may cite public health or national security to justify these tariffs under Article XX and XXI of the GATT 1994, demonstrating their necessity and absence of less trade-distorting alternatives is challenging. The complexity of the fentanyl crisis and domestic demand make such exceptions difficult to apply.
Ignoring WTO's Dispute Settlement Mechanism
Instead of utilizing the WTO's dispute settlement process, the US has imposed tariffs unilaterally. This undermines the multilateral trading system's stability and predictability, potentially inviting retaliatory measures from other WTO members and sparking a global trade conflict.
Detrimental Effects of US Tariffs
Unilateral tariffs can provoke backlash from other WTO members, leading to a potential trade war. Higher tariffs increase the cost of imported goods for American consumers and reduce the global competitiveness of US businesses.
The Need for Multilateral Cooperation
Addressing the fentanyl crisis requires international collaboration rather than unilateral trade measures. Strengthening cooperation with relevant countries, enhancing chemical oversight, and dismantling trafficking networks are essential steps toward sustainable progress.
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Unilateral trade coercion won't fix the U.S. fentanyl crisis
cgtn.com
