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Highlights from the WTO & U.S. Trade Law and Policy Summer Program

From June 21 through July 2, 2021, Professor Padideh Ala’i and Dr. Renata Amaral co-directed a comprehensive, two-week course on the World Trade Organization (WTO) and various aspects of U.S. trade law and policy. The course covered cutting-edge issues and concerns including international relations and policy, public health initiatives, investments, labor and worker rights, food safety, the environment, and several other interesting topics that affect international trade.

Challenges of Dispute Settlement, WTO, and Regional Mechanisms

The WTO’s Appellate Body, known as its “crown jewel,” recently became inoperative due to its ongoing vacancies after the U.S. administration refused to appoint new members.  The panelists featured at the course had varying opinions as to whether this appellate mechanism is really needed and whether it’s worth saving.

Ambassador Alejandro Jara, who had served in various capacities at the WTO and its dispute settlement system, believes the Appellate Body helped improve the WTO system and gave it legitimacy since governments were able to review panel rulings from a legal perspective. However, the WTO is in its current position due to the mismatch of expectations of governments and the outcomes of the Appellate Body and panels. Alejandro believes this mismatch led to the break of trust between members and the Dispute Settlement system panels, including the Appellate Body. He explained that there was a political responsibility for the secretariat to have more dialogue with governments, and he emphasized the need for reform of the system.

Jennifer Hillman, a former member of the WTO Appellate Body, explained that at the time the WTO agreements were up for consideration, there were already concerns that the rules-based system may yield too much power and that members of U.S. Congress were concerned that the Dispute Settlement system was taking away sovereignty.

Jesse Kreier, former Chief Legal Officer of the Rules Division at the WTO, thought it was exceptional that the U.S. had agreed to the binding dispute system in the first place considering the U.S.’ concerns with ceding authority to international organizations. Padideh Ala’i, a professor of law at WCL who moderated this panel, noted China’s presence in the system and opened discussion about the extent that the U.S.’ diminishing power and China’s rise played a role.

U.S.-China Trade Relations: Past, Present, & Future

U.S.-China relations have a significant impact on domestic and global trade. Since China’s integration into the trade regime, the U.S. and Chinese economies have become entangled which has challenged trade practices, businesses, and political administrations. Simon Lester, who has focused research on the history of international trade law, explained that to write the “rules for the world’s economy,” President Obama negotiated the Trans-Pacific Partnership (TPP) trade agreement with countries of the Asia-Pacific region. However, Congress never ratified the agreement and the Trump administration explicitly withdrew from the treaty. Simon pointed out that on a multilateral level, Trump pushed for WTO reform after he proclaimed that letting China into the WTO was a mistake. On a unilateral level, U.S. Trade Representatives resurrected Section 703 that allows the USTR to determine, on its own, whether foreign governments violate international trade agreements or otherwise unreasonably restrict trade and to retaliate without prior WTO authorization. The trade dispute escalated until a tariff truce was agreed (known as the “Phase One” deal in 2020), which in turn raised questions about its enforceability since it lacked a neutral mechanism to determine when violations take place.

Of the various legal mechanisms used to discipline China, Stacy Ettinger, who has extensive litigation experience for the U.S. in WTO proceedings, emphasized that the most concrete step President Biden could take is to pursue more litigation against China through the WTO. Stacy explained that China’s accession documents have plenty of provisions to push China to liberalize more, for example, in areas of forced technology transfer and of state-owned enterprises. On a regional level, the Biden Administration could adhere to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP; formerly the TPP) in order to gain more leverage regarding China.

Another concern resulting from U.S. China relations is the developing “tech war” with China. Andrew Shoyer, drawing on his seven years of experience at the Office of USTR and WTO, explained that the U.S.’ embargo with respect to China has immediate implications on the U.S.’ export controls. The Bureau of Industry and Security of the Department of Commerce reformatted export controls, and the jurisdiction of the Committee on Foreign Investment in the United States greatly expanded. These two mechanisms are used in tandem to stand guard and prevent investments from China (and elsewhere) in critical technology.

Neysun Mahboubi, a Research Scholar of the Center for the Study of Contemporary China, at the University of Pennsylvania, illustrated how nations are watching closely as the U.S. seeks a solution to China’s Belt and Road Initiative, which is a vehicle for China to expand its soft power by building up trading relationships with other countries. The Biden administration revealed in its G7 statement that it sought to strengthen its position regarding China by fostering relations with its European allies, but Neysun explained that this puts a lot of unwelcomed pressure on the Europeans.

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May 27 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law May 28 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law May 29 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law May 30 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law May 31 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law June 01 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law June 02 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law June 03 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law June 04 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law June 05 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law June 06 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law June 07 12:00PM-9:00PM Washington College of Law Summer Program of Advanced Studies on Human Rights and Humanitarian Law Events Calendar ... Find more events in our events calendar
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