Adjunct Professor Matt Gold appeared on SiriusXM’s show Knowledge@Wharton where he discussed U.S.-China trade relations.
According to Matt Gold, an adjunct professor of law at Fordham University and a former deputy assistant U.S. trade representative for North America, the U.S. is “not free to react to this in an impulsive way … that is quick and will bring quick results.” He noted that former U.S. presidents have chosen not to pursue that path for good reason.
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Gold said a central piece of the debate is that two ways exist for the U.S. to retaliate against another country for violating trade treaty obligations: “One is legal. One is not.” The legal route involves raising a complaint at the World Trade Organization, which would mean litigation to prove to a WTO panel that the other country violated a trade agreement, followed by a similar process at an appellate body, he explained. If the charge is proved, the other country would then be given a chance to comply with the rules, and then if it fails to comply, the appellate body would approve specific retaliation, all of which would take about four years, he added.
Not following that WTO process “seriously risks pushing everyone into a trade war and a seriously dangerous downward spiral,” said Gold. Trump’s memorandum on the tariffs gives the U.S. trade representative that option of pursuing the four-year process, even if his rhetoric didn’t indicate that, he added.