Ross on the WTO

The new executive order’s language on the Geneva-based World Trade Organization has created waves in some trade circles, particularly in light of some of the points raised by the Secretary of Commerce in comments to Washington reporters.

“As far as I can tell there has never been a systematic evaluation of what has been the impact of the WTO agreements on the country as an integrated whole. So it’s trying to find violations and abuses,” said Ross in a press briefing the day before the order was signed. That claim has been countered by some trade analysts, who have referred to past reports on the effects of trade deals conducted by US government agencies.

Other statements made by the Commerce Secretary have also drawn scrutiny, such as the pace of the WTO’s meetings schedule; the alleged “structural problem” of its dispute settlement mechanism; and the lack of clarity on how the US would proceed after this new report is concluded.

“[The] WTO is a very, very bureaucratic organisation. Their main meetings occur four times a year. Well, when you think about how dynamic trade is and how rapidly it changes, the idea of a leisurely four-times-a-year meeting schedule, it’s really not very consistent with dealing with problems,” said Ross.

While various reporters asked whether the US would consider a WTO withdrawal, Ross did not confirm whether that would be an option. “We haven’t done the study and we haven’t presented the President with all of the alternatives. Certainly, as any multilateral organisation, there’s always the potential for modifying the rules of it,” he said.