By David Lawder

WASHINGTON (Reuters] – U.S. Trade Representative Katherine Tai has a vision to reform the World Trade Organization. It aims at restoring the dynamism that characterized its creation in 1995. When countries committed themselves to settling grievances and finding compromises, they shaped global trade systems.

Experts in trade say that her problem lies in getting over entrenched and competing national interest – even those of the United States–that have kept the organization stagnant for the last quarter century.

Tai said recently to reporters that WTO, established in 1997 to promote international commerce, can no longer return to the status quo. WTO requires new visions and energy to be relevant in an ever-changing global economy.

Tai stated, “My vision of WTO reform is for WTO members to come to Geneva and wherever else it might be that they may convene” They should be “prepared to fight for what they believe in the WTO,” Tai said.

Tai brings this perspective to a WTO ministerial meeting on Tuesday. It will be held against the backdrop, however, of a world trading system scarred from the coronavirus pandemic.

Trump had threatened to resign from the WTO, expressing doubts about multilateral trade agreements and free trade. Two years ago, the WTO’s dispute resolution system was crippled by opposition from the United States to Appellate body judge appointments. Washington argued that this violated its mandate.

Tai repeatedly reiterated Biden’s support of the WTO. He has also sought engagement with U.S. allies in reforms to this organization.

“She is saying everything right. Wendy Cutler is a former USTR negotiator who currently directs the Asia Society Policy Institute. The question now is whether or not the U.S. plays the same leadership role as in past years to broker these deals. Perhaps that isn’t as obvious as it once was.

THE ELUSIVE CONSENSUS

The first ministerial meeting will be held under the new WTO Director General Ngozi Okonjo Iweala. These issues include a long-desired deal to reduce harmful fishery subsidies as well as a waiver on intellectual property rights regarding COVID-19 vaccinations. (See Factbox https://www.reuters.com/markets/deals/what-could-wto-ministerial-conference-achieve-2021-11-23)

India, other developing nations, and activist groups are pushing for this. Some WTO members have threatened to block progress on issues other than vaccine waivers.

Tai in May stated that the USA supported the waiver in order to permit more vaccine production in developing countries. But negotiations remain deadlocked due to opposition from Britain and Switzerland.

Tai pushes for the United States to prohibit fishing fleets using forced labor. India and other emerging nations have resisted the demand.

Jamieson Greer (former USTR chief-of-staff under the Trump administration) said he does not see Tai lowering his demand due to the Biden administration’s attention on workers’ rights. Therefore, his expectations are low.

Greer is a Washington trade lawyer who works with King and Spalding. These could be replaced with plurilateral declarations, which would not be considered failure.

“I believe it will likely underscore the fact that the WTO is unable to solve many of these complex problems.”

Okonjo Iweala said to reporters Thursday that she hopes Tai’s U.S. engagement will bring people together for compromise, particularly on COVID-19 or the fisheries question.

HARD CHOICES

Tai has not yet engaged in significant multilateral negotiations. However, after taking office in March she managed to win some bilateral trade victories. These included deals with the European Union to resolve a dispute of 17 years about aircraft subsidies, and to ease U.S. tariffs on steel and aluminum with no duty for European producers.

Cutler led negotiations on behalf of USTR from November 2015 to a Pacific Rim trade agreement that Trump abandoned.

According to her, she stated that “my experience with negotiations such as this is that there is a lot done during the last week of ministers being present.” It’s still too early to say goodbye to the WTO, ” she said. There are many things that can occur in that one week. Ministers often reach compromises when faced with hard decisions and they get together.