On Wednesday 29 August, the European Parliament’s international trade committee (INTA) undertook a reflection exercise on reforming the World Trade Organisation (WTO), which will lead to the adoption of an initiative report.
During a debate, several MEPs emphasised their support for the multilateralism characterising the WTO, whilst explaining that the international organisation for regulating global trade displayed areas of dysfunction and had to evolve. Some also asked whether they should act with or without the US, the most powerful trading power in the world, whose president regularly questions the basic tenets of international trade.
The Chairperson of the INTA Committee, Bernd Lange (S&D, Germany), who will be jointly responsible for steering through the drafting of the initiative report, said that reform of the WTO in three different areas was necessary but without losing sight of the sustainable development goals: making the WTO responsible for e-Commerce; gender equality; intellectual property; public subsidies; increasing the effectiveness of the dispute settlement system and; developing WTO governance by providing in secretariat with the power of initiative.
According to Paul Rübig (EPP, Austria), the co-rapporteur, there are two ways of interpreting things: the unilateralism of Mr Trump where “everyone loses out” and “the reasonable way”, which seeks to negotiate bilateral agreements that will later be extended to pluri-and multilateral agreements. He added that “We need to take action in the interest of consumers at a time when the values creation chain is being globalised”.
According to this Austrian Christian Democrat, the meeting in Washington at the end of July between Mr Trump and the President of the European Commission, Jean-Claude Juncker, was “a first attempt” to reflect on finding an end to the current impasse (see EUROPE 12071). Maria Arena (S&D, Belgium), however, highlighted the possible discrepancy between calling for multilateralism, on the one hand, whilst rushing to Washington into the arms of the severest critic of this principle.
Elsi Katainen (ALDE, Finland) described the current blockage at the WTO appeals body as “extremely worrying".
The US recently refused to extend the Mauritius Judge’s mandate, which expires at the end of September. Out of a body of seven judges, only three are operating.
Inmaculada Rodríguez-Piñero Fernández (S&D, Spain), said that reform of the WTO should also include the setting up of a multilateral tribunal that helps settle disputes between private and state investors. Yannick Jadot (Greens/EFA, France) asked “with what mandate did Mr Juncker go and promise that the European Union would buy GMO soya and more US shale gas?” According to this environmentalist, the WTO blockage is also due to the fact that its member countries are very divided when it comes to activities like agriculture. He also warned "if we do not manage to include social, environmental and human rights, will never have the support of citizens”.
When he was invited to speak, the European Commission representative agreed with the MEPs that WTO reform had to be based on basic questions of governance and strengthening the Parliamentary dimension of the WTO. He was also in favour of the US commitment made at the end of July during Mr Juncker’s visit to Washington, to get involved in the ongoing reflection, as well as the setting up of an EU/China working party on the question.
Mr Lange and Mr Rübig will present a draft report to be discussed at the parliamentary committee on Thursday 27 September.
At the end of June, the European Council called for reform of the WTO and new rules, particularly with regard to tackling the problems of industrial subsidies, intellectual property infringements and forced technology transfers (see EUROPE 12052). (Original version in French by Mathieu Bion)