Steve Hanke in an interesting article on the new mercantilism that has sized some American policymakers makes some good points, but then he throws in this little gem:

“This brings us to another question. Would the legislation proposed by Senators Schumer and Graham be legal? It would clearly break the World Trade Organization’s rules. Among other things, the U.S. would trample on China’s Most Favored Nation status under the WTO treaty.

But members of Congress don’t seem to give a hoot about breaking WTO rules. Just take the antidumping amendment of Senator Robert Byrd (D-W Va.). Senator Byrd slipped it into an agricultural appropriations bill in 2000, and supposed free-trader Bill Clinton signed it into law. The Byrd statute allows U.S. companies to file antidumping petitions, have tariffs imposed and then divide up the loot. The WTO recently ruled the Byrd amendment illegal and authorized other countries to hit the U.S. with retaliatory tariffs unless Congress repeals it.”

If breaking the WTO’s rule is “illegal” then is not the WTO an instrument of World Government?