Tai Says US Presenting Ideas on WTO Dispute Settlement Reform, Asks for More Ideas
U.S. Trade Representative Katherine Tai, speaking Aug. 24 to other G-20 trade ministers, said the U.S. wants to reform the World Trade Organization by improving compliance with -- and enforcement of -- WTO members' commitments, "restoring efficacy to the negotiating arm; ... equipping the Membership to address unfair practices and global market distortions, and putting the organization on the footing to promote trade policies that build resilience and address current global challenges."
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China, which is the poster child for global market distortions, according to the U.S., must approve changes at the WTO, as everything is done on a consensus basis in Geneva.
"The global economy is clearly changing around us. The path to sustainable development for many developing countries, including LDCs [least developed countries], includes moving up the value-added ladder, which has been made more difficult by certain Members’ deeply unfair trading practices," she said to an audience that included India, Indonesia, Brazil and Turkey.
She said that the WTO needs to have a different approach to flexibilities in its agreements. "We cannot accept the idea that those Members that are economic and manufacturing powerhouses based on any reasonable criteria, should be able to claim flexibilities intended for less advantaged Members," she said.
On the dispute settlement function at the WTO, Tai said, "there is a new and constructive process taking place in Geneva that is designed to find a way to reform where previous efforts have failed."
She said reform has to "end the practice of judicial rulemaking." Tai said the U.S. shared "more than 30 ideas" on dispute settlement reform, "including on the most difficult issues, such as appeal and review."
She asked the other ministers to bring their own ideas if the U.S. proposals do not work for their countries. "We are approaching these discussions with an open mind on how to address our and our collective concerns," she said.