A Deceptive Joy in Geneva over U.S. China Trade Talks |
Photograph Source: Dan Scavino – Public Domain
There is joy in diplomatic Geneva. The neutral, good offices convenor of Reagan-Gorbachev and Putin–Biden summits is back in the headlines with trade talks between China and the United States. “China–U.S. tariff talks place Swiss diplomacy on centre stage” boasted a local website. But wait, isn’t the trade war between the United States and China a clear violation of international norms codified at the World Trade Organization (WTO)? Is the euphoria over the possibility of averting a global trade war and recession actually undermining internationally accepted principles and institutions of multilateralism such as the WTO based in Geneva?
In a highly anticipated meeting, representatives of the world’s two largest economies met over the May 10 weekend in Geneva to try to avert a global economic slowdown caused by President Trump’s imposition of a minimum 145 percent tariff on all Chinese imports and China’s countermeasure 125 percent import tax on all American imports. U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng led the high-level delegations.
No official statement followed the first day of talks, but Trump was optimistic; “A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner,” he posted on Truth Social after Saturday’s seven hour session. Trump added: “We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!”
The final agreement after Sunday’s meeting said that starting May 14, the U.S. will drop its 145 per cent tariff rate for Chinese imports to 30 per cent, while China agreed to lower its rate from 125 per cent to 10 per cent. Both reductions caused global economic and political relief. In addition, the two sides agreed to set up a joint mechanism........