Inside US Trade | May 25, 2001
A senior U.S. trade official signaled on May 21 that the U.S. would seek changes to the World Trade Organization's dispute settlement system in a new round of global trade talks, and hinted that one possible approach to improving the system would be to establish an alternative framework for multilateral dispute settlement outside of the WTO.
In an address to the Chamber of Commerce on U.S. trade priorities in a possible new round, Chief of Staff for the U.S. Trade Representative M. B. Oglesby said litigation in the WTO should be viewed by countries as "an option of last resort."
"We should inject new thinking into the [WTO] dispute settlement process," Oglesby said. "One idea is to establish a voluntary framework outside the confines of the WTO that would accelerate the dispute settlement process and keep backlogs at a minimum."
Some U.S. industry representatives have begun calling for changes to the WTO dispute settlement system after several major disputes, in particular ones involving the European Union, have not led to a policy change. In addition, the U.S. is facing a likely adverse report on its tax practices, which will be difficult to change in the short-term.
Oglesby also pointed out that the Bush Administration is committed to transparency in all future trade negotiations and trade agreements. "It will build public awareness, underscoring that trade is not the exclusive province of battling bureaucrats and agitated activists," he said.
In his broad-ranging remarks, Oglesby stuck close to free trade principles that have been elaborated publicly by U.S. Trade Representative Robert Zoellick and other Bush Administration officials.
Oglesby stressed that the top priority for the U.S. in a global round would be seeking to eliminate government subsidies. He advocated using incentives -- not trade sanctions -- to promote core labor and environmental standards, democracy and the rule of law.
He said increasing protections for intellectual property would be "one of the big issues on the table," and emphasized the importance of these protections for U.S. pharmaceutical companies. Protecting the intellectual property rights of drug companies would allow them to continue making advances in research.
Oglesby said efforts to liberalize trade in a new global round should focus on products that are commonly used by American households, including food, clothing and furniture. He said that in this way trade liberalization could have the same effect as tax relief, boosting disposable income by helping to reduce prices on these basic items.Inside US Trade:
