Reforming the World Trade Organization
On December 10, the terms of two of the three current members of the World Trade Organization’s (WTO) Appellate Body (AB) – part of the WTO’s dispute resolution system - will expire. The United States is blocking the appointment of new members. While Canada is sympathetic to some of the United States’ frustrations and the need for broader WTO reform, we cannot lose sight of the benefits we gain by having a functional WTO undergirded by binding dispute settlement. The system provides stability and predictability to member nations and businesses, and helps avoid a “law of the jungle” environment where members engage in tit-for-tat retaliation, through tariffs and other measures which decrease trade. In fact, through the WTO’s Dispute Settlement Body, the U.S. actually has a perfect record – 20-0 - in disputes against the member it has been most critical of: China. These wins have resulted in real changes in Chinese trade practices over the years, including amendments to unfair import charges, the removal of value added taxes, and favourable changes to the US in the areas of copyright and licensing. Read more to learn how Canada is taking steps to address U.S. concerns and reform the WTO.
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