Lighthizer Relays Concerns Related to WTO's Litigation Focus, Development Rules at Ministerial
While the World Trade Organization provides a helpful negotiating forum for contracting parties, "many" are concerned the institution is becoming too litigation-centered, U.S. Trade Representative Robert Lighthizer said Dec. 11, in an opening plenary statement at the 11th Ministerial Conference in Buenos Aires. “Too often members seem to believe they can gain concessions through lawsuits that they could never get at the negotiating table. We have to ask ourselves whether this is good for the institution and whether the current litigation structure makes sense,” he said, according to a speech transcript.
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Lighthizer added that “there is something wrong" when five of the six richest countries in the world presently claim developing country status. "Indeed, we should all be troubled that so many Members appear to believe that they would be better off with exemptions to the rules," he said. Citing International Monetary Fund and World Bank Statistics for 2016, an Office of the U.S. Trade Representative spokeswoman said Luxembourg is the only one of the countries with the six highest GDPs based on purchasing power, to rightly declare itself a developed country at the WTO. Qatar is the richest country by that metric, with Luxembourg second, and Macau, Singapore, Brunei and Kuwait, rounding out the top six, in descending order.
As it is “impossible” to negotiate new rules when many current ones aren’t followed, the U.S. is leading a discussion on the need to correct the “sad performance” of several members in notifications and transparency, as several members are “intentionally circumventing” these obligations, Lighthizer said. The U.S. is also interested in “revitalizing” WTO standing bodies to ensure they’re focused on new challenges, like “chronic overcapacity” and state-owned enterprises, he said. Lighthizer also acknowledged the WTO does an “enormous amount of good” in providing a helpful discussion forum for its members. “The United States looks forward to working with all Members who share our goal of using the WTO to create rules that will lead to more efficient markets, more trade and greater wealth for our citizens,” he said. “Such outcomes will build public support not only for open markets, but for the WTO itself.”