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TWN
Info Service on WTO and Trade Issues (Mar25/15) Geneva, 25 Mar (D. Ravi Kanth) — For the 85th time, the United States on 24 March blocked a proposal from Colombia, on behalf of 130 countries, on filling all seven vacancies at the World Trade Organization’s Appellate Body, the highest adjudicating body for global trade disputes, amidst Washington’s seemingly rampaging trade war against countries, said people familiar with the development. The US stance of blocking the appointments at the Appellate Body has now reached the six-year mark and there is little likelihood that it will be restored at all, said people familiar with the development. At a meeting of the WTO’s Dispute Settlement Body (DSB) on 24 March, Colombia piloted the proposal from 130 countries seeking the start of an expeditious selection process for filling the vacancies at the Appellate Body, which Washington has blocked since December 2019. In two other developments at the DSB meeting, the European Union blocked a first-time request from China for establishing a dispute panel to rule on the definitive countervailing duties imposed by Brussels on imports of new battery electric vehicles from China. Pursuant to the Dispute Settlement Understanding (DSU), panel establishment will be automatic if China presses ahead with its second request at the next DSB meeting. The second development at the DSB meeting involved the EU’s statement announcing its intention to implement the panel ruling in DS593 (European Union – Certain Measures Concerning Palm Oil and Oil Palm Crop Based Biofuels) by bringing the concerned measures into conformity with the WTO agreements. The EU, however, informed that it would need a reasonable period of time to do so. Indonesia, the complainant, emphasized the necessity for the EU to adjust its policies in line with the WTO agreements as well as the importance of prompt and effective implementation of the panel’s ruling. Indonesia signalled its intention to work constructively with the EU to ensure a smooth and efficient implementation process. It called on the EU to provide a clear and detailed time-line for this process. Also at the DSB meeting, the US again voiced its concern over the dispute it lost to Hong Kong (China) concerning the US origin marking requirement (DS597). The US said that it was raising the matter “as a result of further alarming developments and effects of Hong Kong, China’s National Security Law on free speech and human rights in Hong Kong, China.” In a sharp rebuke, a trade official of Hong Kong (China) reiterated its position regarding the concerns raised by the US. Hong Kong (China) said it was regrettable that the US continues to abuse the DSB meetings as a platform for political posturing. The US approach appears to reflect a troubling presumption that it alone has the authority to interpret national security matters, Hong Kong (China) said, adding that it remains frustrated at being deprived of the legitimate right to allow the case to be settled through a proper channel. While more than two-thirds of the WTO membership repeatedly demanded the immediate start of the selection process to fill the vacancies on the Appellate Body, successive US administrations have chosen to block any such request. The unilateral US action has also ensured that the trade disputes that the US had referred to the dysfunctional Appellate Body remain “voided” for years, said people familiar with the development. At the DSB meeting, Colombia said the extensive number of members submitting the proposal reflects a common interest in the functioning of the Appellate Body and, more generally, in the functioning of the WTO’s dispute settlement system. Around 20 countries intervened in support of the joint proposal submitted by Colombia, and for the urgent need to restore a fully functioning dispute settlement system. However, the US stuck to its long-held position that Washington does not support the proposed decision, noting its longstanding concerns with WTO dispute settlement that have persisted across US administrations. A US official cited the recent panel reports in DS593 and DS597 to highlight the US concerns regarding WTO dispute settlement overreach. The US official said fundamental reform of WTO dispute settlement is needed to address these and other US concerns. It added that despite extensive US engagement, WTO members continue to have vastly different perspectives on the role of WTO dispute settlement in today’s world and the reforms that are needed. As the reform process of the dispute settlement system, launched after the WTO’s 12th ministerial conference (MC12) in Geneva in June 2022, remains bogged down on the central issue of what ought to be the appeal/ review mechanism, the prospects for any conclusion of the reform process “seems like a mirage”, said a legal official who asked not to be quoted. Ten members (China, Canada, Hong Kong-China, Singapore, the EU, Australia, Norway, Japan, New Zealand, and Iceland) urged countries to consider joining the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), a contingent measure to safeguard the right to appeal in the absence of a functioning Appellate Body. In another interesting development at the DSB meeting, the US apparently remained silent when ten countries (United Kingdom, Canada, Switzerland, the EU, Australia, Norway, Japan, New Zealand, Iceland, and Korea) condemned Russia’s invasion of Ukraine while expressing their support for, and solidarity with, Ukraine and its people. VENEZUELA-RELATED TARIFFS In a separate development, US President Donald Trump announced that Washington would impose a likely unilateral tariff of 25% on countries importing oil and other petroleum products from Venezuela as punishment for the alleged failure on the part of Caracas to stop the flow of criminal gangs into the US. Writing in his Truth Social website on 24 March, President Trump said that the US “will be putting what is known as a Secondary Tariff on the Country of Venezuela, for numerous reasons, including the fact that Venezuela has purposefully and deceitfully sent to the United States, undercover, tens of thousands of high level, and other, criminals, many of whom are murderers and people of a very violent nature.” “Therefore, any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country,” he said. Further, “all documentation will be signed and registered, and the Tariff will take place on April 2nd, 2025, LIBERATION DAY IN AMERICA,” he added. +
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