[CTC] Biden admin "digital trade" pivot at WTO driven by IPEF

[Arthur Stamoulis]

Politco
ON THE DEFENSE: U.S. Ambassador to the WTO María Pagán said on Monday that the Biden administration’s decision to pull back from bipartisan digital trade provisions was driven by talks over the Indo-Pacific Economic Framework.

“All we did in a way in the WTO was to match the pause that we’re having in this other space,” Pagán said in remarks at the Center for Strategic and International Studies, previewing the upcoming 13th Ministerial Conference in February.

USTR is “taking a different tack on digital issues [in the IPEF negotiations], taking time to rethink how we need to address this issue,” Pagán said. The comments mark USTR's most explicit acknowledgement that the controversial choice to pivot away from long-standing digital trade proposals at the WTO was fueled by the desire to pursue a new direction in the Indo-Pacific talks.

The move continues to face fierce backlash from Republican lawmakers, moderate Democrats and industry groups who have urged the administration to reverse the decision.

For instance: Former USTR Susan Schwab, who served under President George W. Bush, joined in that criticism when speaking at the same event. She described USTR’s move as the United States “shooting itself in the foot” because of the negative consequences it could have for U.S. companies. “It is hard to lead from a place of fear and timidity and ambiguity,” Schwab said.

On WTO reform: Pagán poured cold water on the prospect of reaching a deal to revive the WTO's ruptured dispute settlement system before the February summit, remarking that “we did not collectively agree [at the WTO’s 12th Ministerial Conference last year in Geneva] that we were going to deliver dispute settlement reform by MC 13.”

“We can have a perfectly sound dispute settlement system at the WTO or anywhere else with just one tier,” she added, meaning there would be no opportunity for countries to appeal rulings. Doug has more here <https://go.politicoemail.com/?qs=9b61fc8021fa77e8ca6ab31de271d966212dc91311f304327561d78ecd50cf406d8675a904040ff5401918ee6e5d610996797a038746d119>.

More tidbits: WTO economies have completed “substantive discussions” over the e-commerce work program <https://go.politicoemail.com/?qs=9b61fc8021fa77e8da40b4250e5cf58deb21a6dc49c6ce9e771139881191ba5838c9461b9ba97f933f3275dfbcc655e07e7ddda502c2a078>, which will have particular implications for developing countries, Pagán said.

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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