US Pushes Services Plurilateral

The US is also one of 21 WTO members currently involved in discussions over beginning negotiations for a plurilateral deal on liberalising trade in services.

The group of WTO members - termed the Real Good Friends (RGF) of Services - has been meeting over the past year to evaluate whether to formally launch the talks, amid scepticism from some other countries over whether such a plurilateral approach could undermine progress in the Doha Round of trade negotiations and the multilateral trading system. The push for a plurilateral services pact comes amid the continued stall in the Doha Round services negotiations, which have seen little movement in recent years.

RGF members finalised an agreement in principle for a framework for negotiations last December, sources told Bridges at the time. The framework is meant to help those members who need a mandate from their capitals to formally participate in negotiations, once those are launched. For others, the framework essentially serves as a summary of the talks to date.

In that context, US Trade Representative (USTR) Ron Kirk formally notified Congress last week of the US’ intention of being part of the negotiations, explaining that “an ambitious, high-standard international services agreement presents a tremendous opportunity to… boost US economic growth and support additional jobs.”

Trade sources have said that negotiations are likely to be launched in March, with the goal of concluding the talks quickly. No set timeline for finishing the talks has been announced.

USTR Kirk announces February departure

Obama’s top trade official also announced on 22 January his plans to leave his post in late February. Kirk had already made clear in recent months that he would not be staying on for the President’s second term, making him one of several Cabinet-level officials to be leaving the Obama Administration.

Kirk’s tenure saw, among other events, the ratification of the above-mentioned trade deals with Colombia, Panama, and South Korea - a process that took years of negotiations and was the subject of a difficult battle in Congress - and the repeal of the Jackson-Vanik amendment on new WTO member Russia. Before serving in Obama’s cabinet, Kirk had previously been the mayor of the US city of Dallas.

Rumours around trade circles of who might replace Kirk - who took on the role of Washington’s chief trade negotiator in March 2009 - have mentioned Michael Froman, Deputy National Security Advisor for International Economic Affairs, Deputy USTR and US Ambassador to the WTO Michael Punke, Deputy USTR Demetrios Marantis, and Treasury Under Secretary for International Affairs Lael Brainard as among the possible contenders for the job.

Once Obama announces his nominee for the post, Kirk’s successor will have to be confirmed by the US Senate.