01 November 2018

Bloomberg: EU revises plan to fix WTO in bid to get US on board

The European Commission, the EU’s Brussels-based executive, is looking to address U.S. concerns about the WTO’s hobbled dispute settlement system when it introduces a revised reform paper prior to the organization’s Dec. 12 general council meeting, the people said, asking not to be identified discussing confidential plans.

A commission spokeswoman said that the effort remains a work in progress and declined to offer further details.

The commission introduced a "concept paper" in September with a proposal to fix some of the WTO’s flaws and address U.S. concerns about the dispute settlement system.

Specifically, the commission paper sought to address a half-dozen U.S. complaints about the functioning of the WTO appellate body, which has the final say in upholding, modifying or reversing rulings that often affect some of the world’s biggest companies and billions of dollars in commerce.

U.S. Block

For more than a year President Donald Trump’s administration has blocked new appointments to the appellate body, complaining that the forum has consistently over stepped its remit with aggressive interpretations of the rules.

If the U.S. 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.

The EU’s initial plan would have meant an increase in the number of appellate body members, extend their term limits, and provide them with full-time jobs. Deputy U.S. Trade Representative Dennis Shea blasted that proposal during an Oct. 4 panel discussion at the WTO.

"Our view is that that means less accountability," he said. "We cannot support something that will make the appellate body less accountable." [...]

Full article on Bloomberg

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