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Info Service on WTO and Trade Issues (Dec22/15) Geneva, 19 Dec (D. Ravi Kanth) — The chair of the World Trade Organization’s Trade Policy Review Body (TPRB), Ambassador Angel Villalobos of Mexico, has concluded that the majority of the WTO members expressed sharp concern that “the impasse with respect to the Appellate Body was jeopardizing the judicial function of the WTO” and asked the US to “lead the reform efforts so that a fully functional dispute settlement system would be operational by 2024.” Surprisingly, at its 15th Trade Policy Review (TPR) that concluded at the WTO on Friday, the US remained totally silent on the issue of restoring the two-stage dispute settlement system with the Appellate Body at the helm of overseeing the adjudicating/enforcement function, SUNS has learned. At the end of the 15th US TPR, the chair of the TPRB issued his restricted room document (RD/TPR/1500*) chronicling members’ responses to the US trade policies. The chair said “despite the tendencies to revert to protectionist measures during times of crises, the United States was complimented for keeping trade and investment channels open during the COVID-19 pandemic.” He said, “over the two-day meeting there were numerous statements recognizing US leadership in the multilateral trading system and many reiterated the importance for this to continue.” Addressing areas such as social and environmental issues through trade policy was part of this agenda and it was hoped this would benefit trading partners as well as the United States, the chair said “members emphasized the importance of keeping open, transparent, and non-discriminatory trade policies, as well as of supporting capacity building and development initiatives that were of particular importance to developing countries.” While members commended the US for its low tariffs, the long-standing preferential arrangements, the importance of unilateral preferences, in particular the Generalized System of Preferences (GSP), Caribbean Basin Initiative (CBI), and the African Growth and Opportunity Act (AGOA), the chair said that many countries “requested the renewal of the lapsed GSP programme.” According to the chair, “members expressed varying degrees of concern regarding recently adopted trade policies and measures, as well as longstanding legislation and instruments that determine the effective access of trading partners to the US market, including maritime transport restrictions, investment screening, and export controls.” He said members noted “that the Inflation Reduction Act (IRA) included several important elements such as the need to lower inflation and accelerate carbon reduction, but also raised concerns regarding subsidies and the treatment of domestic versus foreign entities.” Even before the conclusion of the US TPR meeting, the US apparently turned a deaf ear to members’ concerns on the treatment of domestic versus foreign entities, as it had announced a fresh round of export sanctions on 36 Chinese entities. The TPRB chair observed that “the issue of subsidies extended beyond the IRA to other areas including agriculture and fisheries” and that “trade-distorting support, ad hoc measures, a high aggregate measurement of support, “Amber” box, and box shifting were some of the issues mentioned in respect of agriculture.” According to the chair, “many participants pointed out that the United States remained a significant user of trade remedies.” “Although anti-dumping duties, countervailing measures, and safeguards remained legitimate trade instruments, their prolonged usage under sunset reviews and the use of certain methodologies drew concerns by many Members,” the chair said. Further, “the resort to other trade remedies, such as Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974, were also raised as concerns by several Members,” Ambassador Rodriguez said. “The direction taken in the area of government procurement due to Buy American policies as well as Made in America initiatives was worrying to some Members,” the TPRB chair said. He said that “during the discussions, adapting to the new world realities was recognized as an important theme, both for the United States’ trade policies but also systemically for the WTO.” According to the chair, “addressing issues related to climate change, sustainable supply chains, environmental standards, and digital and technological developments was important, and the United States had shown it stood ready to take on these challenges.” During the meeting, the US faced a tsunami of questions on various aspects of its trade policy, the chair noted, adding that it “reflects the importance of the United States in the multilateral trading system and the interest of Members in engaging with the United States on its trade and related policies.” Ambassador Rodriguez expressed his hopes that “the US delegation will consider and further reflect on these issues and on the many constructive comments that it received during the Review.” He said, “members look forward to receiving answers to outstanding and follow-up questions within the customary one month.” +
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