EU-WTO: Phil Hogan to toughen EU trade laws after partial collapse of WTO body

The EU’s trade policy chief has vowed that Brussels will still be able to hit other countries’ exports with punitive tariffs despite the partial collapse of the World Trade Organization’s dispute-settlement system.

Phil Hogan said that the EU would toughen its own laws in response to the loss of the WTO’s appellate body, which, as of this week, is no longer able to hear cases because Washington has blocked the appointment of new judges. The body is the highest authority in the 164-member organisation for arbitrating disputes.

The proposed EU legal changes would empower Brussels to impose additional tariffs in situations where a WTO dispute-settlement panel has ruled in the EU’s favour, but the losing country then appeals the case to the non-existent appellate body.

Mr Hogan said that countries could be tempted to “appeal into the void” in this way as a stalling tactic.

The EU trade commissioner, who took office at the start of this month, said that such a move would normally force the EU to suspend any retaliatory action against the country, tying Brussels’ hands despite its companies facing unfair competition.

“It is unacceptable that the EU cannot enforce its rights through adjudication”, he said. “The EU’s economic interests are left unprotected.”

#WTO
#EuropeanUnion
#Trade

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