Retaliation is only legal under a specific scenario. Most political leaders face massive competition from domestic interests groups to provide them protection against foreign competition.According to WTO rules, when a country finds its partner using unfair trading practices, it can bring the dispute to a WTO panel.Last, trade agreements recognise the role of politics.India has also been a beneficiary of this practice. President Donald Trump has also threatened tariffs on a range of Chinese goods worth $200 billion. In return, the US’ trading partners are planning to impose tit-for-tat retaliation tariffs on goods imported from the US. And in the absence of any enforcing power, there are no repercussions to countries ignoring WTO precedents. The global trading system is based on mutual gains and diplomatic goodwill. Most countries fear that an adverse ruling might affect their international credibility.
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