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Rep. Brady Says Appellate Body Can't Be Revived Without 'Serious Changes' at WTO

Rep. Kevin Brady of Texas, the top Republican on the House Ways and Means Committee, said Republicans on the committee will be more active in 2020 in backing the administration's call for significant World Trade Organization reforms. When asked by International Trade Today if he thinks the appellate body will be revived this year, he said he didn't know. Brady, who was speaking to reporters Jan. 8, said, “There's got to be some serious changes. That's crucial to the credibility of the WTO for the long term. This has been a long-standing concern, not just in the U.S. Because of that appellate body/dispute resolution system is so long, at times arbitrary, and oftentimes not enforced, it really undermines the rules-based trading system -- which I know we all want.”

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This is a contrast to the U.S. Chamber of Commerce's position on the Trump administration's decision to kill the appellate body by not allowing any nominations to it. Chamber President Thomas Donohue said Jan. 9 that “safeguarding this institution and its dispute settlement system should be an urgent international priority. Let’s not shutter the WTO Appellate Body. Such drastic action doesn’t serve America’s interests.”

The WTO ruled in favor of the U.S. in the long Airbus subsidy dispute, and the Office of the U.S. Trade Representative authorized 10 percent or 25 percent tariffs on $7.5 billion worth of European goods, which were first levied Oct. 18.

When asked if he was concerned that months of tariffs have not gotten the European Union to settle the dispute to U.S. satisfaction, Brady characterized the length of tariffs as a “few weeks,” and said that “my sense has been that our administration is willing to work through a number of those key issues, but I don’t know the status on it.” Brady said he would be talking with the new EU trade commissioner when he visits Washington later in January.

The ranking Republican brushed off the chances for a bill that would give Congress more say on Section 232 tariffs, introduced by Ways and Means colleague Rep. Ron Kind, D-Wis. “We'll see, but I think right now, the focus has been on opening markets for new customers.”