Blumenauer Opening Statement at Trade Subcommittee Hearing

(As prepared for delivery)

Today’s hearing comes at an important junction for the WTO.  In just over a couple weeks, the WTO will hold its thirteenth ministerial meeting. That is, all WTO Members will gather to set the agenda for the organization’s future, including WTO reform.

I support the WTO.  The WTO, however, must remain relevant by addressing issues related to the challenges of today, such as non-market practices, forced labor, climate change, and women’s economic empowerment. 

Let me start by commending Ambassador Tai and her team in Geneva, led by Ambassador Pagán, for the robust agenda at the upcoming WTO Ministerial.  The agenda includes numerous pressing topics that I support, such as addressing harmful fisheries subsidies and extending the e-commerce moratorium.

Substance – and not arbitrary deadlines – should drive the outcomes at the ministerial.  I urge the Biden administration to resist any efforts from our trading partners, including some of our closest allies, to agree to outcomes that do not fully reflect U.S. interests just for the sake of agreeing and getting alone. 

MC13’s success should also be measured by the ability of WTO Members to craft a forward-looking vision for the WTO that takes into account the needs of the least developed countries. 

In this regard, two least developed countries, Comoros and Timor-Leste, will become the newest WTO Members at MC13.  These two countries are a welcome addition to the organization. 

I also support reforming the WTO by equipping it to address the climate crisis.  The agreement that established the WTO recognized that the multilateral trade system should seek to protect and preserve the environment.  I’d like to hear from our witnesses how we can transform this recognition into concrete commitments. 

Another important WTO reform item is dispute settlement. Reform must address long-standing U.S. concerns.  For over 20 years, multiple administrations and the U.S. Congress have raised concerns with the WTO’s dispute settlement system, especially its Appellate Body.  

As we’ll hear from witnesses today, the WTO’s Appellate Body has gone beyond WTO rules in a variety of areas, ultimately restricting the ability of the United States to regulate in the public interest, as well as protect U.S. workers and businesses against unfair trading practices.

Speaking of unfair trading practices, WTO reform must also address the disruptions caused by non-market economies.  Non-market policies practices are fundamentally inconsistent with the norms of the WTO.  China, which continues to discriminate against American companies and subsidizing its key sectors, is the most egregious example.  WTO reform needs to address harmful non-market practices.

In closing, I want to remind my colleagues that the global economic landscape has changed since the WTO was founded in 1995.  To remain relevant, the WTO must evolve and adapt to address the challenges of today.

I look forward to hearing from our witnesses on these issues.  Thank you.