Paris, Nov 1 (Prensa Latina) The former director general of the World Trade Organization (WTO) Pascal Lamy described here today as a failure the economic management of US President Donald Trump, who is seeking his re-election on the grounds of successes in that sector.
Trump failed along the line, by aggravating his country’s trade deficit, which he promised to reduce, said the current president of the Paris Forum for Peace.
Speaking to the weekly Le Journal du Dimanche, he warned that Americans consume more than their income would allow, but by owning the dollar they can live on credit on the backs of other countries.
According to Lamy, with his policy of reducing taxes on companies and the richest, the Republican candidate for the White House in next Tuesday’s elections had the effect of stimulating consumption and therefore imports.
Establishing tariffs on imports of steel, aluminum and Chinese components has also not worked, measured with an impact on the pockets of citizens, including the poorest, he said.
In this regard, he specified that these charges are assumed by the companies that import them and then produce which has repercussions on customers and strengthens China, the nation it tries to harm.
In Lamy’s opinion, the US-China trade war, fueled by Trump, will generate global effects for decades.
The former director of the WTO between 2005 and 2013 considered that a victory for Trump on Tuesday will represent the continuity of the United States on the route of its deglobalization, the dismantling of multilateralism and the challenge to the rules of world trade.
A victory for his rival, Democrat Joe Biden, would pave the way for Washington to return to the WTO table and reopen a space for cooperation, he said.
However, Lamy clarified that regardless a favorable outcome for Republicans or Democrats, the United States’ complex relations with China, to which it feeds vulnerability and conflicts with the European Union, such as the Boeing-Airbus dispute and over the tax on North American Internet giants.