Dr. Bahaa Helmy writes: Creative Chaos in the Global Trading System

Last February, US President Trump announced the imposition of tariffs on US imports of certain household appliances and solar power units, in light of his plan to protect the United States of America from what he described as unfair trade agreements and practices with various countries around the world, particularly its trade relations with China.

The aim was to protect American manufacturers from foreign competition within the framework of the "America First" policy.

In March, he announced a new package of tariffs on US imports of iron, steel and aluminum, justifying this by claiming that steel poses a threat to US national security, in addition to his stated aim of protecting American jobs and the American market from foreign competition.

China announced that it would impose new tariffs worth 50 billion dollars on American products in response to the US President's decisions, while declaring its wish to step back from the brink, at a time when Trump is threatening to impose further tariffs that would endanger development in China and elsewhere should Beijing take further retaliatory measures.

The European Union also announced the imposition of additional tariffs on American imports starting this July in response to these policies, stating that it would coordinate with the World Trade Organization to rebalance the situation. Meanwhile, US President Donald Trump accuses European countries of imposing too many taxes on products coming from his country, which has prompted European countries to resort to negotiations with America to obtain exemptions from these decisions.

It is a genuine trade war led by the United States to reduce the enormous trade deficit it suffers vis-à-vis China and the European Union within the framework of the "America First" policy, despite the World Trade Organization expressing its deep regret and concern over these policies and calling for respect for international agreements, without the organization appearing to play any effective role in these events.

The World Trade Organization is founded on the principles of free trade exchange, non-discrimination and reciprocity, and its system is based on liberalizing world trade from quantitative restrictions and customs duties. The principle of free trade is the international framework for trade that enabled the United States of America to occupy the leading position in world trade, before the US President issued his recent decisions opposing the principle of free trade, which violate the principles and objectives of the organization and undermine the foundations of trade and globalization, after studies indicated that by 2025 China will become the world's largest economy, surpassing America. This will inevitably have repercussions for the organization, trade agreements and global growth rates.

The question arises: what are the effects of these decisions, sanctions, tariffs and countermeasures on the principle of free trade? What are the repercussions of these decisions on the role of the World Trade Organization? Is the United States of America beginning to distance itself from the World Trade Organization, in light of the US President's announcement of a possible withdrawal from some free trade agreements, or is it relying on a policy of creative chaos in world trade and on emptying the organization of its substance and its role as a whole?

Some say that perhaps the slogan "America First" means relying on economic power and technological dominance to obtain the best and fastest financial returns, driven by the US President's conviction and belief in his own ability to negotiate and succeed in trade deals, away from the conventional political solutions the United States pursued in the past. Consequently, this may well write the end of the World Trade Organization's role, as happened with the United Nations and the Security Council resolutions concerning Jerusalem.