RESOLUTION EC 211

FORUM: ECONOMIC COMMITTEE

QUESTION OF: Measures to counter the side effects of the trade war between the People’s Republic of China and the United States of America

SUBMITTED BY: Gabon

CO-SUBMITTERS:Indonesia, Tajikistan, Oman, Lebanon, Iran, Ukraine, Qatar, Singapore, China, Kazakhstan, Mongolia.

STATUSRejected

THE ECONOMIC COMMITTEE,

 

Recognizing that US tariffs are one of many factors predicted to stem global growth rates, applying pressure to global commodity prices,

 

Acknowledging that the trade war was launched by the United States because of Chinese protectionism, intentionally inhibiting a level playing field between Chinese and foreign enterprises, intellectual property theft, and an increase in competitiveness because of alleged currency manipulation,

 

Alarmed by analysis showing that a US-China tariff escalation could reduce global exports by up to 3 percent (674 billion dollars) and global income by up to 1.7 percent (1.4 trillion dollars) with losses across regions,

 

Welcoming the 2019, March 15 new Foreign Investment Law of the People’s Republic China allowing a level playing field through identical legislation, protection, promotion as well as solicitation of opinions for new legislation for all enterprises be, they foreign or Chinese,

 

Guided by the Economic and Trade Agreement between the Government of the United States of America and the People’s Republic of China also known as the ‘Phase One Trade Deal’ that was ratified on the 15th of January 2020, that among other things protects intellectual property and stops competitive devaluation,

 

 

  1. Requests that both the United States of America as well as China to continue dialogue regarding the trade war with the intent to take measures to assist nations that have been harmed by the collateral damage caused by the war, further suggesting that the United Nations Conference on Trade and Development (UNCTAD) report “Trade Tensions, Implications for Developing Countries” be used to determine the collateral damage;
  2. Proposes that the United States of America to overrule current tariffs put in place after 21th of March 2018 and reduce them to zero, for People’s Republic of China (PRC) and other countries impacted by the trade war on all products such as steel and agriculture by the first of January 2021, announcing and preparing at least 6 months in advance helping future impacted companies:
    1. who will no longer be able exercise because of predicted downfall of trade through means such as but not limited to subsidies helping Research and Development to gain market competitiveness or subsidies helping market diversification
    2. who will expect a gain in competitiveness through overall lower prices by means such as but not limited to publishing comprehensive statistics of expected change in the market to help companies prepare;
  3. Encourages the United States of America administration to maintain a relationship of trust with major trading partners and hold back from imposing unilateral sanctions in order to return to respecting the World Trade Organisation (WTO) rules;
  4. Strongly encourages the facilitation of lodging WTO complaints in cases of inconsistencies in commitments made in signed treaties, agreements and understandings such as but not limited to the Understanding on Rules and Procedures Governing the Settlement of Disputes, the General Agreement on Tariffs and Trade 1994 (“GATT 1994”), the Agreement on Safeguards;
  5. Further recommends the reviewal of the ‘’Phase One Deal” with regards to the ongoing pandemic and thus to insure a complete collaboration between the USA and the PRC by means such as the reviewal of all seven chapters, including intellectual property, technology transfer, trade in food and agricultural products, financial services, macroeconomic policies and exchange rate matters and transparency, expanding trade, bilateral evaluation and dispute resolution;
  6. Further invites the United States and PRC to continue openly negotiating on the “Phase Two trade Deal” within the WTO giving a monthly report on progress and main stumbling blocking the deal:
    1. keeping as main objective the drastic reduction of tariffs to level equal or below 2018 levels\
    2. actively listening to the international community and implementing their relevant suggestions as the trade war is global issue
    3. strongly avoiding all misplaced, unfounded affirmations from both parties
    4. recommends Violation consequences to the new trade deal between PRC and USA such as: 
      1. diplomatic negotiations 
      2. the threat of economic action by the UN, USA, or PRC;
  7. Further Encourages the reinforcement of inter-governmental free trade areas such as The Continental Free Trade Agreement (CFTA) and the EU Schengen in order to counterbalance the bilateral power of the United States of American and the PRC;
  8. Suggests limiting future trade wars to avoid a retaliatory situation with measures such as but not limited to:
    1. responding to future trade wars immediately and globally after they have been observed or declared putting future trade wars through a global response to diplomatically reduce tensions and then coercively through means such as but not limited to embargoes and tariffs
    2. by setting trade wars under the jurisdiction of the World Trade Organisation in away that would condemn through WTO procedures, all countries desiring to double their initial tariff within the same year, on a targeted country
    3. restarting the import and export of goods by China and USA from all around the world at the same amounts as before the trade war by 2025 to improve the economies of other countries:
      1. the reunion of the major exporters and importers of both the USA and the PRC in case of a new breakout in this trade war; in order to bring different stand points to the discussion 
      2. invites large American and Chinese companies to play a major role in the de-escalation of future tensions through lobbying and financial investments; 
      3. the establishment trading treaties with the participation of representatives from both nations to have closer monitoring of the socioeconomic side effects of the trade war and ensure financial equilibrium on debts to stimulate consumption.
  1. 9. Encourages that if the United States and China refuse to engage in direct talks within the diplomatic negotiations process they have a free will to choose a representative nation each to pursue direct diplomatic talks on behalf of them,

 

11. Asks the UNDP to provide governments of countries outside of the US and China with matching grants to aid businesses affected by the trade war that meet a certain criteria such as but not limited to those who;

a) average the countries equivalence of less than $35million yearly income

b) employ less than 250 employees

c) can demonstrate that they are directly and significantly negatively impacted by the trade war