South Korea abandons developing nation status in win for Donald Trump, putting pressure on China to

[beijingwalker]

South Korea abandons developing nation status in win for Donald Trump, putting pressure on China to do likewise

• The US president in July named Korea in a list of countries claiming the status even though they were among the world’s richest nations
• Seoul’s announcement is likely to add to pressure on China to also drop the self-declared status, which grants World Trade Organisation privileges

Bloomberg

Published: 11:37am, 25 Oct, 2019

US Secretary of the Treasury Steven Mnuchin shake hands with South Korean Deputy Prime Minister and Finance Minister Hong Nam-ki on October 17. Photo: AP


South Korea is abandoning its developing-nation privileges at the World TradeOrganisation following allegations by the Trump administration that some countries were taking advantage of the status.
US President Donald Trump in July named South Korea in a list of countries claiming the status even though they were among the world’s richest nations. South Korea has mainly used the self-declared status to protect its agricultural sector – it imposes a tariff of more than 500 per cent on rice imports.

“It’s difficult to be recognised any longer as a developing nation in international society considering our economic status,” South Korea’s Finance Minister Hong Nam-ki said at a nationally televised address. “The government will do everything it can to provide maximum protection in sensitive agricultural areas such as rice in future WTO negotiations.”

The country’s finance ministry said in a separate statement that South Korea is not giving up privileges it has already secured as a developing nation and that the decision only affects future WTO talks. South Korea will also continue to honour WTO-endorsed agreements previously signed among developing nations, it said.

South Korea’s announcement on Friday is likely to add to pressure on China
to drop the status. Trump has repeatedly called for the world’s second-biggest economy to give up the privileges granted by the WTO.

“This is a win for Trump pressuring China,” said Cheong In-kyo, a professor of international trade at South Korea’s Inha University. “China now has one fewer reason to hold on to its developing-nation status.”


The WTO allows countries that claim the status to enjoy longer transition periods for implementing trade deals and protection against emergency import restrictions by developed nations.

Warning of unilateral action in July,Trump named China, Brunei, Hong Kong, Kuwait, Macau, Qatar, Singapore, the United Arab Emirates, Mexico, Turkey
and South Korea as unworthy of the status. Singapore has since said it would not seek privileges granted by the status in negotiations.
https://www.scmp.com/economy/china-...rning-its-back-hong-kong-housing-model-favour

 

[beijingwalker]

When China's per capita GDP reaches South Korea and Singapore's level, we will also abandon developing nation status .

 

[8888888888888]

S Korea is rich enough like Japan, why would they still keeping developing nation status ?

 

[tower9]

S. Korea stopped being a developing country back in the 90s. It is ridiculous that they still have this title.

China is still technically a developing country because it is huge and massive parts of it is less developed, however, China's industrial system is among the most competitive in the world and it is unfair for China to hold on to this title and game the system. China needs to shed it's developing country status.

 

[8888888888888]

Western, Manchuria and even central China is still developing. No point leaving developing country status when those areas are under development.

 

[Baby Leone]

and on the other side we have fake Sur g kal Strike champions on our pathetic East who are bend on calling themselves as developed country with all their sh!tty and pathetic condition.

 

[beijingwalker]

Kuwait, Qatar, Singapore, the United Arab Emirates

Can't believe that South Korea together with the above rich nations are still enjoying developing country status today and US wants China to give up hers.

 

[8888888888888]

Singapore is developing ? I want there before and it’s not a 3rd world nation like India.

 

[Mista]

Well, Singapore doesn't take advantage of our developing-country status though. We are one of the freest economy and more than 99% of all imports into Singapore enter the country duty-free. It's 0% tariff for most countries.

https://wits.worldbank.org/CountryProfile/en/Country/SGP/Year/LTST/TradeFlow/Import/Partner/all/

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Singapore does not exploit WTO provisions for developing nations
In response to queries from The Sunday Times, MTI (Ministry of Trade and Industry) said that Singapore fully supports the importance of updating WTO rules to ensure the organisation's continued relevance.

"We are key partners in discussions on strengthening and updating the WTO," it said, citing as an example Singapore's role as co-convener in the WTO Joint Statement Initiative on E-Commerce, which focuses on developing new rules for the digital economy.

"We are in contact with our WTO partners, including the US," added MTI.

It also cited how Singapore committed to implement the WTO Trade Facilitation Agreement upon its entry into force instead of seeking a transition period that it was entitled to, as an example of how the Republic was not taking advantage of its developing country status.

Washington's move to push the WTO to reclassify Singapore as a developed country is unlikely to have a significant impact on Singapore's trading relations, said Dartmouth College Associate Professor Davin Chor, who specialises in international trade and political economy.

"Singapore is already committed to a very free and open trading system, with minimal tariffs levied on imported goods. In particular, Singapore does not make extensive use of some of the provisions and exceptions that developing countries can appeal to with respect to the WTO," he told The Sunday Times.

Singapore's exports to its major export markets are largely covered under free trade agreements, which a change in development status label is unlikely to affect, he added.

"The memo itself appears to be part of the wider strategy by the current US administration to put more pressure on China on the trade front, " said Dr Chor.

https://www.straitstimes.com/world/...exploit-wto-provisions-for-developing-nations

US aware Singapore doesn't take advantage of developing-country status

Singapore says it has an understanding with the United States that the city-state does not take advantage of privileges that come with "developing country" status in the World Trade Organisation (WTO).

In response to a tweet last week from US President Donald Trump accusing countries of abusing that status, and ordering his top trade negotiator to take action, Minister for Trade and Industry Chan Chun Sing said his Government has never taken advantage of such benefits.

"They are not asking us to change the developing-country status," Mr Chan said in an interview with Bloomberg yesterday. "They are asking whether we will forgo the SDT privileges, which we have never availed ourselves of in the first place, so it is a non-issue."

He was referring to the WTO's "special and differential treatment" provisions. WTO privileges for developing economies include longer transition periods for implementing trade agreements and protection against emergency import restrictions imposed by developed nations. "We have always said that any privileges should be based on the circumstances rather than a uni-dimensional assessment of a country's status, like GDP or GDP per capita," he said.

Mr Chan said a recent letter from US Trade Representative Robert Lighthizer showed the US understood that Singapore retained the label but did not use the benefits. He did not offer more details of the letter.

https://www.straitstimes.com/world/...e-advantage-of-developing-country-status-chan

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It's time for us to update our status in the WTO since it's a non-issue. It would be immodest of us if we unilaterally 'declare' ourselves as a developed country in the past.