The European Union will host trade
ministers from the US and Japan in September in Brussels to assess the
escalating trade war and how to protect the World Trade Organisation
(WTO).
ministers from the US and Japan in September in Brussels to assess the
escalating trade war and how to protect the World Trade Organisation
(WTO).
According to two officials with knowledge
of the meeting, the gathering will be part of an effort to address
China’s trade practices in a way that doesn’t marginalise the WTO.
of the meeting, the gathering will be part of an effort to address
China’s trade practices in a way that doesn’t marginalise the WTO.
The meeting will precede about 10 high-level confabs around the globe over the next year aimed at calming trade tensions.
The push to reform the Geneva-based WTO
has gained urgency since Donald Trump became president, with his
administration showing open disdain for the multilateral trade body and
Trump himself saying “The WTO is unfair to US.”
has gained urgency since Donald Trump became president, with his
administration showing open disdain for the multilateral trade body and
Trump himself saying “The WTO is unfair to US.”
The EU is working on a proposal to amend the composition of the WTO as well as address about a half dozen American complaints.
“The situation is serious,” WTO
Director-General Roberto Azevedo told reporters last month in Geneva.
“There are many leaders in the world that already understand that we
need to have negotiations, that we need to sit down and
talk, that we need to find solutions.”
Director-General Roberto Azevedo told reporters last month in Geneva.
“There are many leaders in the world that already understand that we
need to have negotiations, that we need to sit down and
talk, that we need to find solutions.”
The Trump administration, arguing that
the WTO is incapable of addressing the problems created by China’s rapid
economic ascent, has resorted to unilateral tariffs on US$50 billion
worth of Chinese goods.
the WTO is incapable of addressing the problems created by China’s rapid
economic ascent, has resorted to unilateral tariffs on US$50 billion
worth of Chinese goods.
Beijing has retaliated in kind with
duties on US$50 billion worth of US goods and pledged to respond if
Trump follows through with his threat of levies on an additional US$200
billion of Chinese products.
duties on US$50 billion worth of US goods and pledged to respond if
Trump follows through with his threat of levies on an additional US$200
billion of Chinese products.
Washington’s decision to side-step the
WTO has raised concern that the trade body could slide into obsolescence
if steps aren’t taken to shore it up.
WTO has raised concern that the trade body could slide into obsolescence
if steps aren’t taken to shore it up.
In May – a day after French President
Emmanuel Macron proposed negotiations to reform the WTO – the US, the EU
and Japan met in Paris and reiterated their concern with some
non-market-oriented measure of some partners.
Emmanuel Macron proposed negotiations to reform the WTO – the US, the EU
and Japan met in Paris and reiterated their concern with some
non-market-oriented measure of some partners.
The trilateral group issued a joint statement citing the need to address “the trade-distorting policies of third countries”.
In addition to the Brussels meeting next
month, the EU will soon unveil a plan to reform the WTO, seeking to make
negotiations more flexible, reduce trade costs, make the
dispute-settlement system more transparent, and to strengthen
the trade body itself.
month, the EU will soon unveil a plan to reform the WTO, seeking to make
negotiations more flexible, reduce trade costs, make the
dispute-settlement system more transparent, and to strengthen
the trade body itself.
Reforming the WTO as well as addressing
Chinese trade abuses will be discussed at a host of meetings around the
world over the next year, including an October gathering in Ottawa of
about a dozen trade ministers.
Chinese trade abuses will be discussed at a host of meetings around the
world over the next year, including an October gathering in Ottawa of
about a dozen trade ministers.
The topics will also be raised at a
high-level Asia-Pacific Economic Cooperation meeting in Papua New Guinea
in November; in December, leaders from the Group of 20 economies will
bring up reform in Buenos Aires; Macron proposed
discussions this fall in Paris; and there will be a ministerial meeting
on the sidelines of the World Economic Forum in Davos.
high-level Asia-Pacific Economic Cooperation meeting in Papua New Guinea
in November; in December, leaders from the Group of 20 economies will
bring up reform in Buenos Aires; Macron proposed
discussions this fall in Paris; and there will be a ministerial meeting
on the sidelines of the World Economic Forum in Davos.
“The United States is gratified that an
increasing number of WTO members appear to be heeding our call on the
urgent need to make the WTO work better,” Dennis Shea, the US Ambassador
and Permanent Representative to the WTO, said
in an emailed statement.
increasing number of WTO members appear to be heeding our call on the
urgent need to make the WTO work better,” Dennis Shea, the US Ambassador
and Permanent Representative to the WTO, said
in an emailed statement.
The push comes as Trump announced on
Monday that the US would terminate the North American Free Trade
Agreement and sign a new trade accord with Mexico. The move could
potentially leave Canada out of the trading bloc.
Monday that the US would terminate the North American Free Trade
Agreement and sign a new trade accord with Mexico. The move could
potentially leave Canada out of the trading bloc.
As tensions between the US and China
escalate, threats to the WTO are growing larger, making it difficult for
its members to delay reforms any longer.
escalate, threats to the WTO are growing larger, making it difficult for
its members to delay reforms any longer.
Since August 2017, the US has blocked
nominees to the WTO’s appellate body saying it has overstepped its
mandate. In October, the seven-member panel will operate with only three
remaining members, which is the minimum number of
panelists required to sign off on appeals cases.
nominees to the WTO’s appellate body saying it has overstepped its
mandate. In October, the seven-member panel will operate with only three
remaining members, which is the minimum number of
panelists required to sign off on appeals cases.
If the US continues its hold, the body
will be paralyzed in late 2019 because it won’t have the three panelists
required to sign off on rulings.
will be paralyzed in late 2019 because it won’t have the three panelists
required to sign off on rulings.
“We don’t necessarily have a due date but
we all know that we need to get the process right,” Mexico’s
Undersecretary of Foreign Trade Juan Carlos Baker told Bloomberg Law
during a press briefing in Geneva. “And for that the sooner
we start the better.”
we all know that we need to get the process right,” Mexico’s
Undersecretary of Foreign Trade Juan Carlos Baker told Bloomberg Law
during a press briefing in Geneva. “And for that the sooner
we start the better.”
