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Reuters
a day ago
- Business
- Reuters
WTO reverses parts of previous decision in EU-China intellectual property dispute
July 21 (Reuters) - World Trade Organization arbitrators on Monday reversed part of a previous panel decision that had rejected the European Union's claims that China had violated the global watchdog's rules on intellectual property. In April, a WTO panel rejected the EU's complaint, lodged in 2022, that China had violated the global watchdog's IP rules over patents for 3G, 4G and 5G mobile technology. However, it did say that China had failed to comply with all WTO transparency obligations. The EU appealed the case at the Multi-Party Appeal Arbitration Arrangement - a surrogate for the WTO's Appellate Body which was shuttered in 2019 after the United States repeatedly blocked judge appointments. On Monday, the arbitrators reversed part of the previous panel decision and found that the Chinese courts' prohibition of patent holders to enforce their patent rights in countries outside of China, through the use of anti-suit injunctions, was not consistent with Trade-Related Aspects of Intellectual Property Rights rules concerning patent rights. The arbitrators upheld the previous findings on four issues but reversed the Panel's findings on three issues. It has given China 90 days to remedy its measures to comply with WTO rules.
Yahoo
01-04-2025
- Business
- Yahoo
Buffeted by Trump, WTO hunkers down to plot future
By Emma Farge and Olivia Le Poidevin GENEVA(Reuters) - From its sleek headquarters on the shores of Lake Geneva, the World Trade Organization hopes to quietly ride out the after-shocks of Trump administration tariffs whose protectionist intent runs in the face of its free-trade mandate. For three decades the WTO has worked to maintain a rules-based and obstacle-free trading system as a motor of the global economy. It says the 5.8% average annual increase in trade it has overseen has created jobs and raised living standards. But now the U.S. determination to double down on tariffs risks sidelining the organisation and its ability to regulate trade, enforce rules and negotiate new ones. In a direct blow to the body, Washington has already decided to pause its funding. Reuters spoke to WTO Director-General Ngozi Okonjo-Iweala and a dozen serving or former officials and delegates to the WTO, who depicted an organisation worried about what the future holds under Trump, but set on continuing its work in the hope that more orderly times eventually return. "(Members) are saying to me: 'Yes we are concerned, but at the same time we're using the system, and we want to continue using it'," Okonjo-Iweala said. "I'm telling you that the bedrock of trade is here and it's not going anywhere. This is what guarantees stability, predictability, trust, any word you want to use, and members know it – including the U.S.," she said, citing agreements that govern patents, food safety and the value of goods for customs. Okonjo-Iweala said the WTO administers just over 75% of global trade, down from around 80% due to recent tariffs, and continues to attract new membership applications. The current alarm follows years of paralysis in the WTO's top dispute settlement arm, the Appellate Body, due to the U.S. blocking new judge appointments during Trump's first term, which was not remedied under former President Joe Biden. CONTINUING TO COPE For now, there is no obvious sign of upheaval at the WTO's headquarters, whose modern facilities stand in contrast to more run-down U.N. institutions nearby. Black Mercedes saloons with diplomatic licence plates linger outside and besuited delegates huddle in small groups in its sunlit atrium. The spacious offices once occupied by judges of its Appellate Body have been taken over by other staff. Trump officials view the WTO as a body that has enabled China to get an unfair export advantage via massive subsidies without making the country open up to foreign businesses - a criticism the WTO rejects. One WTO staffer said people were "nervous" about its future but not currently fearful for their jobs. Asked about possible cuts, Okonjo-Iweala said: "We are making our plans on how to continue to cope. I'm not the type who will let my staff find out from the newspaper what I'm planning." Indeed, those staff providing support to the first tier of the WTO dispute system - which remains functional but cannot act on appeals - have seen their workload go up since Trump's return, with five disputes filed since January. "The press depicts a picture that the whole WTO system is falling apart, which, in fact, it is not", said Thomas Cottier, an arbitrator at the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), a surrogate for the WTO appeals court. The WTO was set up in 1995 as a successor to the General Agreement on Tariffs and Trade (GATT) to create a better framework for the exchange of goods. Now worth over $30 trillion, global trade grew briskly following the collapse of the Soviet Union and China's entry into the WTO in 2001. As a proportion of global GDP, trade leapt from 38% in 1989 to 61% in 2008 when the global financial crisis bit, World Bank data show. Since then it has seesawed. Still, when Okonjo-Iweala in February suggested an event to mark the WTO's 30th anniversary, the U.S. delegate raised budgetary concerns and urged her to make it an occasion for "careful reflection", a meeting transcript showed. Okonjo-Iweala took note and pared back the event, she said. The April 10 event will be members-only and the costs of a reception will be borne by Switzerland. WTO delegates are cautious about prospects for new global agreements to reduce trade barriers in the current environment, with all 166 members having to agree by consensus. One silver lining is that a 2022 deal to curb fishing subsidies could soon take effect, with just 17 more ratifications needed. WTO staff comfort themselves that the Trump administration, which quickly announced its plan to quit the World Health Organization, has not so far said it will leave the trade body. Looking further into the future, others say the fate of the WTO and the free trade it defends is ultimately down to its members, in particular open economies such as Europe's. "It can survive this if the non-U.S. WTO members agree to remain committed to the obligations they've made, and decide they can run the system without the U.S.," Pascal Lamy, who was director-general of the WTO from 2005 to 2013, told Reuters. (Additional reporting by Dave Graham; Editing by Sharon Singleton and Mark John)
Reuters
01-04-2025
- Business
- Reuters
Buffeted by Trump, WTO hunkers down to plot future
GENEVA, April 1(Reuters) - From its sleek headquarters on the shores of Lake Geneva, the World Trade Organization hopes to quietly ride out the after-shocks of Trump administration tariffs whose protectionist intent runs in the face of its free-trade mandate. For three decades the WTO has worked to maintain a rules-based and obstacle-free trading system as a motor of the global economy. It says the 5.8% average annual increase in trade it has overseen has created jobs and raised living standards. But now the U.S. determination to double down on tariffs risks sidelining the organisation and its ability to regulate trade, enforce rules and negotiate new ones. In a direct blow to the body, Washington has already decided to pause its funding. Reuters spoke to WTO Director-General Ngozi Okonjo-Iweala and a dozen serving or former officials and delegates to the WTO, who depicted an organisation worried about what the future holds under Trump, but set on continuing its work in the hope that more orderly times eventually return. "(Members) are saying to me: 'Yes we are concerned, but at the same time we're using the system, and we want to continue using it'," Okonjo-Iweala said. "I'm telling you that the bedrock of trade is here and it's not going anywhere. This is what guarantees stability, predictability, trust, any word you want to use, and members know it – including the U.S.," she said, citing agreements that govern patents, food safety and the value of goods for customs. Okonjo-Iweala said the WTO administers just over 75% of global trade, down from around 80% due to recent tariffs, and continues to attract new membership applications. The current alarm follows years of paralysis in the WTO's top dispute settlement arm, the Appellate Body, due to the U.S. blocking new judge appointments during Trump's first term, which was not remedied under former President Joe Biden. CONTINUING TO COPE For now, there is no obvious sign of upheaval at the WTO's headquarters, whose modern facilities stand in contrast to more run-down U.N. institutions nearby. Black Mercedes saloons with diplomatic licence plates linger outside and besuited delegates huddle in small groups in its sunlit atrium. The spacious offices once occupied by judges of its Appellate Body have been taken over by other staff. Trump officials view the WTO as a body that has enabled China to get an unfair export advantage via massive subsidies without making the country open up to foreign businesses - a criticism the WTO rejects. One WTO staffer said people were "nervous" about its future but not currently fearful for their jobs. Asked about possible cuts, Okonjo-Iweala said: "We are making our plans on how to continue to cope. I'm not the type who will let my staff find out from the newspaper what I'm planning." Indeed, those staff providing support to the first tier of the WTO dispute system - which remains functional but cannot act on appeals - have seen their workload go up since Trump's return, with five disputes filed since January. "The press depicts a picture that the whole WTO system is falling apart, which, in fact, it is not", said Thomas Cottier, an arbitrator at the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), a surrogate for the WTO appeals court. The WTO was set up in 1995 as a successor to the General Agreement on Tariffs and Trade (GATT) to create a better framework for the exchange of goods. Now worth over $30 trillion, global trade grew briskly following the collapse of the Soviet Union and China's entry into the WTO in 2001. As a proportion of global GDP, trade leapt from 38% in 1989 to 61% in 2008 when the global financial crisis bit, World Bank data show. Since then it has seesawed. Still, when Okonjo-Iweala in February suggested an event to mark the WTO's 30th anniversary, the U.S. delegate raised budgetary concerns and urged her to make it an occasion for "careful reflection", a meeting transcript showed. Okonjo-Iweala took note and pared back the event, she said. The April 10 event will be members-only and the costs of a reception will be borne by Switzerland. WTO delegates are cautious about prospects for new global agreements to reduce trade barriers in the current environment, with all 166 members having to agree by consensus. One silver lining is that a 2022 deal to curb fishing subsidies could soon take effect, with just 17 more ratifications needed. WTO staff comfort themselves that the Trump administration, which quickly announced its plan to quit the World Health Organization, has not so far said it will leave the trade body. Looking further into the future, others say the fate of the WTO and the free trade it defends is ultimately down to its members, in particular open economies such as Europe's. "It can survive this if the non-U.S. WTO members agree to remain committed to the obligations they've made, and decide they can run the system without the U.S.," Pascal Lamy, who was director-general of the WTO from 2005 to 2013, told Reuters.
Voice of America
06-02-2025
- Business
- Voice of America
White House monitoring China's complaint on Trump tariffs at WTO
The White House on Thursday said it was monitoring a complaint by China to the World Trade Organization that accuses the United States of making 'unfounded and false allegations' about China's role in the fentanyl trade to justify tariffs on Chinese products. The complaint was made Wednesday, a day after President Donald Trump raised tariffs on Chinese goods by 10%. The White House said the new duties on Chinese goods were aimed at halting the flow of fentanyl opioids and their precursor chemicals. China said it was imposing retaliatory tariffs on some American goods beginning February 10, including 15% duties on coal and natural gas imports and 10% on petroleum, agricultural equipment, high-emission vehicles and pickup trucks. The country also immediately implemented restrictions on the export of certain critical minerals and launched an antitrust investigation into American tech giant Google. In the WTO filing, China said the U.S. tariff measures were "discriminatory and protectionist" and violated international trade rules. Beijing has requested a consultation with Washington. China's request will kick-start a process within the WTO's Appellate Body, which has the final say on dispute settlements. A White House official told VOA the administration was monitoring Beijing's file but did not provide further details. Analysts say Beijing's move is largely performative and unlikely to yield much relief. The Appellate Body has been largely paralyzed following the first Trump administration's 2019 move to block appointments of appellate judges over what it viewed as judicial overreach. The Biden administration continued the policy. China recognizes the WTO is not going to put a lot of pressure on the United States because Washington is fully capable of blocking any legal process there, said Jeffrey Schott, senior fellow at the Peterson Institute for International Economics. 'So instead, I think the Chinese reaction has been moderate in indicating that they will act tit for tat against U.S. trade,' he told VOA. Schott added that there's 'a desire to keep things cool' and moderate the damage, just as what happened during the first Trump administration when a trade deal was agreed upon after initial retaliatory trade actions. On the U.S. side, the 10% tariffs against China are much lower than the up to 60% that Trump promised during his presidential campaign, he said. Trump-Xi call Trump imposed import duties on Beijing after delaying his actions to impose 25% tariffs on Mexico and Canada following conversations Monday with their leaders. Tariff critics are hoping that a conversation between Trump and Chinese President Xi Jinping could lead to similar results. White House press secretary Karoline Leavitt said Tuesday that the call 'is being scheduled and will happen very soon.' However, Trump has dismissed the negative impact of China's tariffs and said he was 'in no rush' to speak with Xi. 'We'll speak to him at the appropriate time,' Trump told reporters at the White House on Tuesday. Unlike Trump's deal with Mexico and Canada, an agreement with Beijing is unlikely to come quickly, considering strong bipartisan support for placing tariffs on China because of concern about the influx of illegal drugs and other national security concerns, said Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security. 'Even if they come up with some kind of agreement to settle this particular tariff or to remove the countertariffs, there will probably be more tariffs on China later in this administration,' she told VOA. The U.S. Postal Service on Tuesday announced that it was suspending acceptance of inbound packages from China and Hong Kong, closing a loophole that Chinese garment and other consumer goods companies have used in the past. These companies, including Shein and Temu as well as Amazon vendors, bypassed existing U.S. tariffs by shipping to American customers directly from China. On Wednesday, USPS reversed its decision, saying it would work with Customs and Border Protection on a way to collect the new tariffs. The Postal Service 'will continue accepting all international inbound mail and packages from China and Hong Kong Posts,' it said. 'The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery.' It is unclear how the fee will be collected in such direct transactions between Chinese sellers and American buyers. Trump's trade actions on China, Canada and Mexico, as well as his threat to impose duties on all foreign shipments into the country, including from European allies, have caused confusion and uncertainty across global trade. Businesses usually respond to trade uncertainty by holding off on investments or passing on increased costs to customers. But the damage goes beyond small and large businesses domestically and abroad, Ziemba said. 'If one of the U.S. goals is relying less on China and Chinese supply chains for critical minerals, for energy, for other things like that, then the uncertainty about whether there's going to be tariffs and investment restrictions on its allies fly in the face of that goal,' she said.
Yahoo
04-02-2025
- Business
- Yahoo
Amid Trump trade tensions, WTO remains crippled arbiter
While US President Donald Trump unleashes trade wars and tariffs, the system for settling such disputes within the World Trade Organization has been paralysed for years -- by the United States. Having returned to the White House, Trump has imposed a 10 percent tariff hike on Chinese goods, with Beijing immediately retaliating with tariffs on US imports of energy, cars and machinery parts. China said Tuesday that it would file a complaint with the WTO over the "malicious" US levies -- but that move is likely to hit a dead end, unless Beijing and Washington resolve the spat of their own accord. - Obama, Trump, Biden roadblock - The WTO was founded in 1995 as a successor to GATT, the General Agreement on Tariffs and Trade dating back to 1948. The process for resolving a dispute at the Geneva-based global trade body goes through several stages. When a complaint is brought, consultations are initiated between the members at odds with each other. If no agreement is reached, the complainant can request the establishment of a special panel, made up of three to five experts. Countries can appeal against the panel's ruling. But the WTO's Appellate Body, composed of seven specialists in international law and trade, has not been able to handle any new cases since December 2019: its seats remain empty due to the United States blocking nominations. This practice began under US president Barack Obama, continued throughout Trump's first term, and carried on under his successor Joe Biden. Washington accuses the Appellate Body of over-interpreting international trade rules and not respecting WTO deadlines for completing cases. The United States also insists the body's decisions must not encroach on "national security". In 2022, the WTO's members decided to hold discussions aimed at having a fully operational system up and running by 2024 -- but no agreement has yet been reached. In the meantime, a number of WTO members, including the European Union and China, have developed an alternative appellate process allowing some cases move forward. Among those cases is a spat between Brussels and Colombia over Bogota's anti-dumping duties on imports of frozen fries from three EU nations. But the United States has not signed up. So while this temporary system works well for the participating countries, it does not prevent other WTO members from continuing to file appeals to the moribund Appellate Body -- effectively leaving the cases in limbo. - Into the void - Currently, 32 dispute panel rulings "have been appealed into the void", according to the WTO. As a result, the decisions of the agency's Dispute Settlement Body (DSB) do not apply because the appeal is up in the air. Of these 32 appeals, two were filed by the United States -- against China and Turkey -- and 11 were filed against the United States, including three by China, two by Canada and two by Turkey. And although the Appellate Body is not functioning, a number of countries are continuing to launch initial complaints, as China has now done. The last time Washington brought a dispute in the first instance was in July 2019, in an agricultural spat with India. The two countries have since reached an agreement. When a country is rebuked by the dispute settlement body, it must implement the experts' recommendations within a so-called reasonable timeframe set by the DSB. Sanctions can be imposed if the country does not fulfil its obligations. apo/rjm/nl/js
