It’s not just the labor cost. I quote Wilbur Ross
Under WTO rules, any foreign company that manufactures domestically and exports
goods to America (or elsewhere) receives a rebate on the VAT it has paid. This turns the
VAT into an implicit export subsidy.
At the same time, the VAT is imposed on all goods that are imported and consumed
domestically so that a product exported by the US to a VAT country is subject to the
VAT. This turns the VAT into an implicit tariff on US exporters over and above the US
corporate income taxes they must pay.
Thus, under the WTO system, American corporations suffer a “triple whammy”: foreign
exports into the US market get VAT relief, US exports into foreign markets must pay the
VAT, and US exporters get no relief on any US income taxes paid.
The WTO had done more damage to this country than ISIS.