CRS Reports on Trade Remedy Issues in WTO Doha Negotiations
The Congressional Research Service has issued a report entitled “Trade Remedies and the WTO Rules Negotiations,” which examines trade remedy issues in the World Trade Organization’s Doha Development Agenda.
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Some in Congress Support Trade Remedies, Say Necessary for Additional Liberalization
CRS states that in DDA negotiations, the frequent use of trade remedies by the U.S. and other developed and developing nations has come under criticism by some WTO members as being protectionist, among other things. However, some in Congress cite U.S. use of trade remedies as necessary to protect U.S. firms and workers from unfair competition.
Some also credit the existence of trade remedies with helping to increase public support for additional trade liberalization measures. These groups would like increased trade enforcement of trade remedies and intellectual property laws.
Others in Congress Seek to Only Use Trade Remedies if in Public Interest
Others in Congress, especially those who represent U.S. importers, manufacturers, and export-oriented businesses, tend to support liberalizing the WTO Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (ADA) and the WTO Agreement on Subsidies and Countervailing Measures (ASCM), in ways that could make use of U.S. trade remedy laws less frequent and relief harder to obtain. For example, there is support in Congress for legislation that would require administering authorities to determine whether or not a trade remedy action is in the overall public interest before such a measure can be imposed.
Limited Trade Remedies, ADA/ASCM ReformEmerge as Major Themes in Doha
In the WTO Doha talks, major themes that have emerged include limiting the use of trade remedy actions in favor of "price undertakings," reducing the level of duties assessed per action by ending mandatory offsets (also known as "zeroing"), or limiting the duration of trade remedy measures through mandatory "sunset" reviews.
Some members also support placing more restrictions on the ability of officials to grant relief to domestic industries through the use of economic interest tests and other administrative procedures and "special and differential treatment" for developing countries. Some countries see revision of the ADA and ASCM and other WTO disciplines on trade remedies as a "make or break" issue if DDA is to succeed.
(Report dated 06/07/10)