Trump rejects WTO tribunal reform proposal and plays institutions in limbo – Economy



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The US government of Donald Trump refused to accept the proposed reform of the World Trade Organization (WTO) presented this Wednesday 12 by the Europe and other governments. This document was considered a solution to the worst crisis that has occurred in the entity since its inception. Negotiators have interpreted the US attitude as a "bad" signal and are now jeopardizing the very survival of the WTO.

The reform of the courts of the entity was at the center of the debate. In recent months, the Trump government has banned the appointment of new judges to the WTO Appellate Body, a kind of high court of commerce. The result has been the emptying of the organ, which has more and more difficulties managing the accumulation of conflicts.

Of the seven members he would need, the court now only counts three and, starting in 2019, there will be two. At the end of the year, an additional term expires and, with one judge, the body stops functioning.

In the hope of reversing the crisis, the EU joined with the Chinese and Indians to come up with a reform proposal and thus serve American interests.

Last week, WTO Director-General Roberto Azevedo went to the United States to talk to the US authorities and told his interlocutors that he had been in charge of the United States. it was conceivable to carry out reforms, particularly after the G20 joint declaration.

A few days later, the US decision is a cold water rain on the future of the entity. At the last meeting of the WTO General Council in Geneva, the EU suggested ways to break the stalemate and rename judges for the entity. Thus, the work would not be limited and the multilateral system could continue to function.

In a speech, the EU also lamented. "We are deeply concerned that this situation represents a risk for the entire WTO system," said Marc Vanheukelen, European Ambbadador in Geneva.

But Dennis Shea, US Deputy Trade Representative, cemented the initiative. "The proposals do not respond effectively to our concerns," he said, without explaining what needed to be done. "It is difficult to see how the proposals could address the concerns expressed by the United States," he warned.

The disappointments of the countries were obvious. A Latin American negotiator admitted to the state that in the face of the refusal, "it's all the WTO that is thrown into limbo".

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