EU proposes reforms to WTO following Trump withdrawal threat

Accra, Sept. 18 – (DPA/GNA) – The European
Commission proposed a series of reforms Tuesday to the World Trade Organization
(WTO), aimed at modernizing the global trade watchdog and adapting it to
modern-day trade practices.

US President Donald Trump has threatened
to withdraw from the WTO unless it is reformed, complaining that the United
States does not get treated fairly.

Washington has also blocked nominations to the
WTO’s trade dispute settlement mechanism, the Appelate Body, leaving it
“on the verge of being paralyzed,” according to the
EU commission.

“[T]he WTO system is slowly grinding to a
halt. It is probably in its deepest crisis ever,” said EU Trade
Commissioner Malmstrom, noting that its rules had not kept up with
technological changes and the volume of modern-day trade.

As examples, she noted that the current rules
do not sufficiently address subsidies channelled through state-owned
enterprises and entirely fail to cover e-commerce.

“We are not reforming the WTO to please
the US,” Malmstrom insisted.

The commission proposal includes changing the
rules to better deal with market-distorting subsidies, improve transparency and
boost the efficiency of the Appelate Body, with a view to unblocking the
nominations process.

Reforming the WTO is a mammoth undertaking, as
any changes would have to be approved by its 164 member countries.

Malmstrom said she would discuss the proposals
at a meeting next week with US Trade Representative Robert Lighthizer and their
Japanese counterpart Hiroshige Seko, while also starting discussions with
China.

Global trade tensions have escalated in recent
months, with the US imposing high tariffs on steel and aluminium imports, as
well as targeting 250 billion dollars’ worth of imports from China. Both moves
have triggered countermeasures.

GNA

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