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Back To WTO

Hot on the heels of a US$214 billion trade deficit with China, the US has launched another [1]WTO salvo. The FT reports:

The report notes an element of domestic politics, and that this is an aggressive step (though whether it is a forward or backward one is debatable!). As usual, it is unlikely that aggressive threats will do anything but harden the already protectionist-nationalist Chinese line (as Secretary Paulson has noted [2]), but reform of export rebates [3]and tax benefits [4]are already on the Chinese agenda, as is more balanced trade, so perhaps this is as much a message for the domestic audience as it is for China. Anyway, the other side of the US-China trade story is outlined here [5].

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