News Agency Geneva, 23 October exclusive interview| U.S. unilateralism seriously undermines the global trading system--Interview with Correa, Executive Director of the South Center

The New York Times reporter Chen Jong-Man.

Carlos Correa, the executive director of the Southern Centre, said that the United States unilaterally introduced the so-called "reciprocal tariffs" based on the trade deficit in commodities, forcing relevant members of the World Trade Organization to agree on discriminatory and exclusive arrangements, seriously undermining the rules of the multilateral trade system, causing a serious impact on developing countries.

The South Center is an intergovernmental international organization co-sponsored by developing countries and headquartered in Geneva, Switzerland. It is committed to safeguarding the common interests of developing countries through policy research and international cooperation.

Koreya said that the U.S. imposed tariffs on many countries such as China, Switzerland, Indonesia and other countries far beyond the restrictive level, completely ignoring the WTO rules, seriously impacted the world trade system.The most seriously affected by the U.S. approach is the developing countries, because these countries "lost export income", "product loss competitiveness" and "employment loss".

¡°High tariffs have reduced their (developing countries) export competitiveness, reduced foreign investment, and devalued the currency,¡± he said, adding that uncertainty caused by U.S. policies is seriously damaging the economies of developing countries. Developing countries urgently need a stable and predictable environment, while U.S. manufacturing uncertainty is very destructive, leading to disruption of global supply chains and a slowdown in the global economy.

As an expert in international intellectual property law and international development policy, Correa pointed out that the United States should consult with other WTO members to adjust tariffs and provide compensation instead of unilaterally breaking promises.

Correa believes that the real cause of the U.S. trade deficit is not the so-called unfair trade, but structural problems such as the decline of U.S. manufacturing competitiveness, the imbalance between savings and investment ratio, and tax avoidance by multinational companies. For example, he said: "As much as 30% of the U.S. trade deficit may stem from corporate tax avoidance."

He pointed out that imposing punitive tariffs can't solve the problems of the United States. "Only by facing up to its own industrial structure, tax system and macroeconomic imbalance can the United States improve its trade situation".

Talking about how to deal with the current situation, Correa called on developing countries to continue to actively participate in the multilateral system and work hard to promote WTO reform to make it more conducive to the development interests of developing countries. "Developing countries should jointly promote the establishment of a more equitable and predictable multilateral trading system and prevent any country from arbitrarily adopting trade measures in a unilateral manner."