In a new policy analysis, James Bacchus, Cato scholar and former chairman of the WTO Appellate Body, argues that as the Trump administration imposes “a barrage of illegal and unprecedented tariffs,” the rest of the world is increasingly trading with each other and reorganizing supply chains to bypass the United States.
“International trade is still happening—and it is happening increasingly without the United States,” Bacchus writes, noting that while the U.S. accounts for roughly 15 percent of world trade, the remaining 85 percent can continue trading irrespective of U.S. actions.
Rather than abandoning the World Trade Organization, Bacchus urges other countries to advance trade liberalization through WTO-based plurilateral agreements that can eventually expand into broader multilateral rules.
To speak with Bacchus, please reach out to Emily at esalamon@cato.org
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