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Statement by EU ambassador João Aguiar Machado on the WTO Appellate Body crisis, at today's General Council meeting.

What do we learn?

1/3
eeas.europa.eu/delegations/wo…
We learn that NZ ambassador David Walker, who chairs the Dispute Settlement Body and is mediating in the crisis, has submitted a revised proposal, but that the US has rejected it.

2/3
eeas.europa.eu/delegations/wo… Screenshot of bullets 3-5
The EU wants a negotiated solution instead of crippling dispute settlement.

It insists on its right to appeal dispute panel rulings and is working on alternatives.

(It has agreements with Canada and Norway to use arbitration for appeals)

3/3
eeas.europa.eu/delegations/wo… Screenshot of final 3 bullets
And here's the US statement rejecting ambassador Walker’s proposed decision to break the deadlock:

geneva.usmission.gov/2019/12/09/amb…

4/6 (extending numbering) Screenshot of the first 3 paragraphs
The US says the Appellate Body has been ignoring "clear text" on how disputes are supposed to work:

DSU = Dispute Settlement Understanding (the WTO agreement on disputes)

DSB = the WTO membership meeting as the Dispute Settlement Body

geneva.usmission.gov/2019/12/09/amb…

5/6 Screenshot of 3 paragraphs 4-6, from
The statement goes into a lot of detail, including the US objection to Appellate Body members considering themselves to be "judges" and the US view that WTO members’ have failed to recognise that the AB exceeded its mandate. The conclusion:

geneva.usmission.gov/2019/12/09/amb…

6/6 Screenshot of concluding 3 paragraphs, from
P.S. Here’s WTO director-general Roberto Azevêdo’s statement.

This week's meeting of the General Council is the last of the year, wrapping up activities of the past 12 months and including reports on the work of the organisation’s many committees.

wto.org/english/news_e…
This is the revised draft decision for breaking the deadlock over the Appellate Body, which Amb. David Walker presented to the WTO General Council today. The US rejected it (again), so there was no consensus to adopt it.

docs.wto.org/dol2fe/Pages/S… Screenshot of the opening part of the draft
Walker said the new draft reflects shared acceptance that there is a problem; provides instructions/guidance for the Appellate Body and WTO members on identified problems; provides a forum for WTO members to discuss implementation with the Appellate Body.

docs.wto.org/dol2fe/Pages/S…
And here's David Walker's report to the WTO General Council

docs.wto.org/dol2fe/Pages/S… Screenshot of paragraphs 1.13 and 1.14 on changes to the latest version of the draft decision
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More from @CoppetainPU see all

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Peter Ungphakorn
@CoppetainPU
They just keep on coming. This morning it was the turn of @bbcworldservice Newsday bbc.co.uk/sounds/play/w1… (from 14 mins 50 seconds)

1/3
The BBC's reporter said WTO dispute settlement decides whether trade measures are “fair”. That misses the point completely. It's about keeping your promises (commitments) and playing by agreed rules.

#RulesBasedTrade

bbc.co.uk/sounds/play/w1… from 14 mins 50 secs

2/3
Newsday’s guest said the WTO’s function is to settle disputes. It’s not.

It’s to keep trade flowing smoothly & predictably, through negotiated rules (agreements).

Dispute settlement is one of many tools to achieve that

#RulesBasedTrade

bbc.co.uk/sounds/play/w1… from 14:50

3/3
Read 3 tweets
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Peter Ungphakorn
@CoppetainPU
The WTO crisis comes to a head this week. We're going to see more like this:

"It could also signal the end of the [WTO] itself, since the system for settling disputes has long been its most effective part." @nytimes no less. (@AnaSwanson)

It's wrong 1/5

nytimes.com/2019/12/08/bus…
First: settling disputes is not, and never has been, the WTO's most effective part.

A large part of WTO work keeps international trade flowing smoothly within WTO rules through transparency (notifications) and talking (regular meetings).

A tiny, tiny part is legal disputes

2/5
Appeals are vital for dispute settlement, and dispute settlement is vital for WTO work.

But other work is also vital. Raising concerns in regular committees helps avoid disputes.

For more, see this👇🏽, and other comments in the thread.



3/5
Read 6 tweets
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Peter Ungphakorn
@CoppetainPU
The EU has now appealed this ruling (good luck with that, EU, since the WTO Appellate Body loses its quorum on Tuesday. Or is it Wednesday?).

The document WT/DS316/RW2 will be available in a few days. Full information on this case is here wto.org/english/tratop…

1/2
Meanwhile, the US’s WTO-authorised tariffs on Scotch whisky, cashmere knitwear, cheese, wine remain in place in retaliation for the failure to comply with the original ruling.

More here👇🏽:

2/2
P.S. the list of US tariffs in retaliation is now here: ustr.gov/sites/default/…
Read 3 tweets

Related threads

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Bryce Baschuk
@bbaschuk
Good morning from the WTO, which this week will lose a critical tool that helps keep global trade wars in check.

Here’s what’s happening with the @wto appellate body: bloom.bg/2lZHk8p
@wto Top trade officials in Geneva are gathering at the WTO for the trade body's last general council meeting of the year.

The 3-day meeting has a packed agenda that will touch on some of the most controversial aspects of the WTO's work.

Full agenda here: bit.ly/2s4wPnb
@wto Some key discussions to watch are items:
5: "Walker process" to end the AB impasse
8(D): 6-month rollover of the WTO e-commerce moratorium
12: US statement re: non-market economies
13: US statement re: WTO negotiations
20: WTO 2020 budget
Read 10 tweets
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Dmitry Grozoubinski
@DmitryOpines
1/ Brexit Implications of the WTO Appellate Body Crisis - A Thread

Smart money seems to be on the World Trade Organization's dispute settlement system losing the quorum of panelists it requires to hear appeals in less than a fortnight.

Does this mean "WTO Brexit" is dead?

No.
2/ A Brexit "on WTO Terms" describes the departure of the UK from the Single Market and Customs Union without a significant new trade agreement in place to replace them.

Without one, the only obligations they'd have to one another are the WTO treaties they're both party to.
3/ It's CRITICAL to understand that a paralysis of the Appellate Body doesn't mean the WTO rules no longer apply.

The rules are contained in international treaties 164 economies freely entered into. They are international law, whether the AB is functioning or not.
Read 14 tweets
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Nuno Valinhas
@nunovalinhas
"O #SportingCP viu hoje exposto um conjunto de temas da vida do Clube que de maneira alguma deviam ter sido exibidos da forma como foram.

Neste momento o relatório de auditoria da #BakerTilly, contratada pela Comissão de Gestão, está concluído."
Comunicado aqui: sporting.pt/pt/noticias/cl… #SportingCP
E porquê a escolha da CG na #BakerTilly para fazer a auditoria? Certamente que não deve ter nada que ver com o facto do seu sócio maioritário chamar-se #PauloGalvãoAndré e ter sido vogal efectivo #SportingCP SAD de #GodinhoLopes, em 2011.
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Alice Stollmeyer
@StollmeyerEU
Any other #EU / #US / @NATO / @UN leaders awake?

@FedericaMog @GermanyDiplo @francediplo_EN @foreignoffice @statedeptspox @NATOpress @UN_Spokesperson

#KerchStrait #Ukraine #Russia #PutinAtWar
#Latvia joins #Lithuania in strongly condemning #Russia's violation of international law.

#KerchBlockade #KerchStrait #PutinAtWar

cc @FedericaMog @GermanyDiplo @francediplo_EN @foreignoffice @statedeptspox @NATOpress @UN_Spokesperson @MFA_Ukraine

STATEMENT #EU:

'We expect #Russia to restore freedom of passage at #KerchStrait & urge.. to de-escalate situation immediately.

Violation of #Ukraine's sovereignty & integrity.

#EU won't recognise illegal annexation of #Crimea by Russia.'

eeas.europa.eu/headquarters/h… #KerchBlockade
Read 12 tweets
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Bryce Baschuk
@bbaschuk
Today the UK and EU moved a step closer to unwinding their joint @wto trade relationship. Each filed documents in Geneva outlining the terms they will use to trade with the rest of the world once Britain leaves the EU.
@wto The two submissions are fundamentally different.
@wto The EU said it will renegotiate its @wto trade commitments to account for Britain's departure from the 28-nation bloc under Article 28 of the GATT.
Link here: bit.ly/2LAlkfd
Read 19 tweets
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Julie Laumann 🌎
@Otpor17
"Trump has used Harley-Davidson as an example of a US business that is being harmed by trade barriers. Yet Harley has warned consistently against tariffs, saying they would negatively impact sales"

Harley, hit by tariffs, shifts some production overseas apnews.com/6c8942f7363743…
Important issue highlighted by @riotwomennn: are tariff exemptions determined by bribes?

Corker: "22,000 companies have asked for exemptions.There is no basis to deal with them. Are they going to grant these exclusions based on political contributions?"
Trump’s trade war with the European Union is going to cost Harley-Davidson as much as $100 million a year and force the manufacturer to shift production out of the U.S. bloomberg.com/news/articles/…
Read 232 tweets

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