World Trade Organization Makes Scant Progress on Revising Rules
December 13 2017 - 6:19PM
Dow Jones News
By Taos Turner
BUENOS AIRES -- Ministers from 164 countries concluded
negotiations at a biennial World Trade Organization meeting
Wednesday without agreements on how to modernize global trade
rules, underscoring concerns about the global commercial arbiter's
ability to resolve trade disputes.
Countries from the U.S. to India and South Africa clashed over
how to regulate everything from electronic commerce to illegal
fishing as trade ministers questioned the WTO's efficacy at a time
when the Trump administration is questioning the way multilateral
organizations approach conflict resolution.
"Clearly this organization is not working well," said Pascal
Kerneis, managing director at the European Services Forum, which
represents service-industry firms in international trade talks.
"There are countries that came here and clearly said in their
speeches that they don't want to move their positions at all."
But while expectations for a breakthrough at the summit were
low, many participants had hoped to find ways to foster e-commerce
and combat illegal fishing.
Progress was minimal and while the U.S and 70 WTO members agreed
to "initiate exploratory work" on e-commerce issues, trade
ministers waited until the last minute to renew a 1998 moratorium
on imposing duties on electronic-commerce transactions. It was
nerve-rattling for technology companies following the talks,
executives said.
Alibaba Group Holding chairman Jack Ma this week urged WTO
members to keep the moratorium, saying new regulations could stifle
growth and hurt smaller companies and startups in the developing
world.
The U.S. and other countries said they were pleased to be among
the WTO members that will begin work on e-commerce negotiations.
Such talks are considered a precursor to a potentially broader
WTO-wide agreement.
"Initiatives like this among like-minded countries offer a
positive way forward for the WTO in the future," U.S. Trade
Representative Robert Lighthizer said in a statement.
The new e-commerce talks are important "because it's a sign of
support for...negotiations under the WTO umbrella at a time when
people are worried the U.S. is not committed to the WTO," said
William Reinsch, a veteran Washington trade-policy maker and
lawyer, now a fellow at the Stimson Center think tank. But, he
added, "it does not have immediate practical significance unless
you think they'll be starting talks early next year."
Many trade representatives were also critical of U.S. efforts to
stymie the WTO's dispute-resolution system, which relies on a
seven-seat appellate court to settle complaints. The U.S. has
blocked attempts to replace judges on the court, which will soon be
down to just three justices, WTO officials say.
"It is one of the most important issues as of now to protect the
WTO," Suresh Prabhu, India's trade representative, said earlier in
the week. "The dispute-settlement mechanism is a very important
part of the WTO, so we should definitely keep that in mind."
Some trade officials said in private meetings that the U.S. had
abandoned its role as a lead advocate of multilateral consensus,
making it harder to reach big agreements.
Mr. Lighthizer left the talks a day before the summit concluded,
and after saying Monday that the WTO was "losing its essential
focus on negotiation and becoming a litigation-centered
organization."
Many negotiators were also disappointed over failure to protect
the world's oceans from illegal fishing that depletes deep-sea
species and destroys coral formations that take hundreds of years
to evolve.
Rémi Parmentier, a political adviser at Bloom, an advocacy group
that works to preserve marine environments, said governments spend
as much as $30 billion annually to subsidize illegal fishing. He
said global leaders had agreed at the United Nations in 2015 to
eliminate such subsidies by 2020, and now those hopes seem
dashed.
The WTO's "members cannot even agree to stop subsidizing illegal
fishing. Horrendous," the European Union's trade commissioner
Cecilia Malmström said in a Twitter post Wednesday.
Mr. Lighthizer supported the EU's position, saying on Twitter
that subsidized illegal fishing "is an existential threat to the
planet."
Roberto Azevêdo, the director-general of the WTO, said in
closing comments that the summit's results were particularly
disappointing.
"In taking this work forward we need to do some real soul
searching," Mr. Azevêdo said.
Jacob Schlesinger in Washington contributed to this article.
(END) Dow Jones Newswires
December 13, 2017 18:04 ET (23:04 GMT)
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