CRS Analyzes U.S. Participation in and Criticism of WTO
The Congressional Research Service has issued a report entitled “World Trade Organization (WTO): Issues in the Debate on Continued U.S. Participation.”
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(Section 125 of the Uruguay Round Agreements Act provides that the U.S. Trade Representative must submit to Congress every five years a report that analyzes the costs and benefits of continued U.S. participation in the WTO.
USTR submitted its report in March 2010, which triggered a 90-day legislative timetable in which any Member of Congress may introduce a privileged joint resolution withdrawing congressional approval of the WTO Agreement. Such a resolution provides an opportunity for Members of Congress periodically to debate whether the WTO is an effective organization and ways it could better serve U.S. interests. However, no withdrawal resolution was introduced in the 111th Congress.)
U.S. Benefits of WTO Participation, Dispute Settlement
Academic studies indicate that the U.S. benefits from its participation in the WTO from broad reductions in trade barriers worldwide, although some workers and industries might not share in those gains.
It is also argued that this multilateral dispute settlement process is unique and that the U.S. has successfully used the process to advance its economic interests.
Complaints that Countries Do Not Adhere to U.S. Decisions/Laws
CRS reports that in WTO dispute proceedings, there have been complaints that countries do not adhere to decisions and that U.S. trade remedy laws have not been judged properly.
Critics Argue that Smaller Countries, Certain Industries Are Treated Unfairly
Because decisions in the WTO are made by member governments, which determine their negotiating positions, file dispute challenges, and implement their decisions, some argue that smaller countries are left out of decision-making and that governments tend to represent the interests of large corporations disproportionately.
Certain advocates of environment, food safety, labor, development, and financial regulation have criticized the WTO. Much of the criticism is based on interpretations of various WTO agreements or rulings that have been controversial.
(Report dated 06/16/10)