WTO Review Chair Cites 'Very Open' U.S. Trade, But Says Issues Remain
The U.S. "maintains a very open trade regime and should be commended for this as well as for its resistance to introduce protectionist measures, even during difficult times," the chair of WTO U.S. Trade Policy Review said in his closing remarks: "It is clear the United States places a high value on transparency and the WTO rules-based system." But he said "there still remain a number of areas that are of systemic concern or have been identified as causing bilateral tensions." For example, members "encouraged" the U.S. to act on several issues:
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
- Agricultural policy in the U.S. "continues to be an important issue for WTO members." The U.S. was encouraged to review domestic support measures, SSG, food aid, and export programs. Policies relating to the beef, cotton, sugar, and dairy sectors were also noted as problematic, he said.
- There needs to be a balance between security concerns and legitimate trade, and concerns were raised about the potential increase in trade transaction costs that could result from the 100% scanning requirements.
- Concerns were raised on methodologies involving non-market economies, regulations related to the zeroing case, and outcomes related to the "sunset review" process.
- Some members commented on U.S. rules of origin and marking/labeling rules, which were described as cumbersome, complex, out-dated, and non-transparent. They were seen as a burden for traders and acted as a non-tariff barrier to trade.
- Members were pleased by the many notifications of TBT and SPS measures during the period of review, but remain concerned about the lack of enough use of international standards, notification of sub-Federal measures, and the application of the Food Safety Modernization Act.
- Although U.S. tariffs are relatively low, tariff peaks remain a concern in some sectors, and affect products of interest to developing countries, such as leather, footwear, textiles, and some agriculture products. Furthermore, the use of tariff quotas and non-ad valorem tariffs were also said to be hindrances to trade.
- The maintenance of the status quo in maritime restrictions remained a concern for many members, as well as the future rule-making with respect to the Dodd-Frank Act.
- Intellectual Property and Government Procurement generated a lot of interest, and the U.S. was asked to clarify some issues.
- Members urged the U.S. to move to reduce speculation and provide confidence, particularly on the impending "fiscal cliff," the farm bill, implementation of the 100% scanning requirement, and the excise tax on government procurement.