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November 27, 2018

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EU plan to solve WTO settlement of disputes

The European Union published proposals yesterday for the reform of dispute settlement at the World Trade Organization that it has agreed with China, India and other countries, hoping to overcome US objections.

The WTO is scrambling to develop a plan for the biggest reform in its almost 24-year history after US President Donald Trump brought the world鈥檚 top trade court to the brink of collapse by blocking appointments of its judges and threatening a US withdrawal.

鈥淣ow, together with a broad coalition of WTO members, we are presenting our most concrete proposals yet for WTO reform,鈥 European Trade Commissioner Cecilia Malmstrom said.

Trump鈥檚 administration has targeted the watchdog of global commerce as part of a wider campaign against trade arrangements he contends have cost US jobs.

US Ambassador to the WTO Dennis Shea has repeatedly accused the WTO鈥檚 Appellate Body of overstepping its authority and breaking its own rules, potentially invalidating its judgments.

He has demanded the Appellate Body abide with the rules and has blocked the appointment process, slowly cutting down the number of judges. There are now the bare minimum of three, but from December 2019 there will be only one, making it impossible for the WTO to issue final appeals.

An EU official said the bloc had identified five US concerns, and the new proposal addressed them comprehensively, adding that it was now up to Washington to do its part.

The proposals will be presented at the WTO鈥檚 General Council, its highest-level format outside of a ministerial meeting, on December 12.

Shea has said the United States objected to an earlier version of the EU proposals, saying they went against the US desire to increase accountability at the Appellate Body.


 

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