US and EU team up against China in blasting world trading system
US trade representative Robert Lighthizer says World Trade Organisation is not equipped to deal with what his country sees as China’s mercantilist tactics
The United States and Europe have said the world trading system is failing to live up to expectations, even as China defended the existing order and urged countries to forge ahead with globalisation.
As trade ministers from around the world gathered for meetings of the World Trade Organisation in Buenos Aires, the top US trade negotiator said the WTO was focused too much on refereeing legal complaints, which distracted from its core mission of expanding commerce.
“We are concerned that the WTO is losing its essential focus and becoming a litigation-focused organisation,” US trade representative Robert Lighthizer said in a speech on Monday at the biennial meeting, which runs until Wednesday.
Under President Donald Trump, the US has stepped up criticism of the Geneva-based organisation, which was founded in 1995 to promote open trade. While the 164-member body is meant to be a forum for countries to negotiate how to reduce trade barriers, talks on a global trade deal have stalled. The US has been blocking appointments to the WTO’s appeals panel, a move the organisation said is undermining its ability to handle disputes.
“Too often members seem to believe they can get concessions through lawsuits that they can never get at the negotiating table,” Lighthizer said.