USCIB Describes WTO Reform It Would Like

The U.S. Council for International Business submitted its outline for how to improve the World Trade Organization to the Senate Finance Committee, which held a March 12 hearing on the WTO (see 1903120055). "Our recommendations for modernizing the WTO should not in any way be read as questioning the business support for WTO. Instead, they are intended to highlight areas for action that would strengthen the ability of the organization to more effectively meet the demands of a changing world," the trade group wrote.

Its suggestions for new disciplines address issues with China, Western Europe and recent U.S. unilateral trade actions. It recommends improving compliance for subsidy notification, with carrots and sticks. There should be new rules to address subsidies "and other market-distorting support provided to and through state-owned enterprises. Examples of other market distorting support that should be covered include government waivers of permits such as for environment, construction, and labor." It said the WTO should expand the list of prohibited subsidies, and clarify what constitutes a public body.

USCIB wants a "permanent ban on applying customs duties and other customs processes on electronic transmissions." That's become an issue in Europe. And, it says, the WTO should "reach agreement on measures to ensure that the national security exception is not applied in ways that undermine the key WTO provisions for opening trade." The Section 232 tariffs use a national security exception.

The U.S. has been blocking appointments to the appellate body to force a conversation about reform. USCIB does not endorse or criticize the U.S. view on the body's flaws. The group wrote: "the WTO members should review and agree on rules dealing with the scope of what can be decided by the Appellate Body, the timing of cases, and the limits of actions by judges after their term has expired."