India, China no longer 'developing nations': US President Donald Trump
Donald Trump said recently that India and China are no longer “developing nations” and warned that the US will not let such countries take advantage of the WTO.
US President Donald Trump stated recently that India and China are no longer “developing nations”. Trump stated that both India and China are taking advantage of the developing nations tag given by the World Trade Organization and he will not let it happen now.
Donald Trump made the statement while addressing a gathering at Pennsylvania. Trump said that both India and China, Asia’s two biggest economies, are no longer developing nations and they cannot take the ‘developing nations’ benefit from the WTO. Trump claimed that by taking the ‘developing nations’ advantage from the WTO, the two nations are putting the US to a disadvantage. Trump said that two nations are not growing but they have grown and warned that the US will not let such countries take advantage of the WTO.
The statement comes at a time when there is a raging trade war between the US and China. The US recently increased the trade tariffs imposed on Chinese goods and China retaliated by imposed higher tariffs on US goods. Trump has also previously criticized India for levying heavy duties on US good and described India as a "tariff king".
Donald Trump had asked the WTO in July 2019 to define its designation of developing country status. The move was reportedly aimed at pointing out how nations like India and China were getting lenient treatment under the global trade rules.
Under the global trade rules of the WTO, developing countries can claim longer timeframe for the imposition of safeguards, softer tariff cuts, generous transition periods and procedural advantages for WTO disputes and avail certain export subsidies.