Commodity Corner
Views on commodities and energy
from Global News Journal:
Can export bans be challenged at the WTO?
Russia’s ban on grain exports as a heat wave parches crops in the world’s third biggest wheat exporter has raised questions whether such export curbs break World Trade Organization rules. Russia is not a member of the WTO, and it remains to be seen how its new grain policy will affect its 17-year-old bid to join. But other grain exporters, such as Ukraine, which is also considering export curbs, are part of the global trade referee.
WTO rules are quite clear that members cannot interfere with imports and exports in a way that disrupts trade or discriminates against other members. But in practice most WTO rules aim to stop countries blocking imports – shutting out competitor’s goods to give their own domestic producers an unfair advantage.
If only trade talks went this quick…
Call it the Congressional version of the lightning round.
Ron Kirk, the Obama administration’s choice for U.S. Trade Representative, had a rapid-fire confirmation hearing before the Senate Finance Committee on Monday that lasted no longer than 45 minutes.
“Exhilarating,” was how Kirk, a former Dallas mayor, described the quick experience, fittingly, in one word.
Senators had to compress the session to attend a vote on amendments to the omnibus spending bill.
Kirk started off by telling senators “It’s been a long and strange journey getting to this point,” but didn’t even make it through a shortened version of prepared remarks before he was urged by Finance Committee Chairman Max Baucus to wrap it up.
“I’m going to ask about four questions, and if you don’t mind, I’d like about 45-second answers,” Baucus told Kirk. He proceeded to ask how Kirk would promote bipartisanship on trade issues, enforce the U.S.-Canada softwood lumber deal, eliminate sanitary and phytosanitary barrier for farm goods, and whether a bilateral trade agreement with Panama was closer to passage than pending deals with Colombia and South Korea.
Baucus alloted Kirk “23 seconds” to explain how he would build support for trade among America’s middle class, which views deals as bad for the country, and later, “15 seconds” to talk about how he would enforce deals.
One of the most fundamental short-comings of the WTO rules is that they prohibit import restrictions on ethical grounds. For example, in 2012 EU will make it illegal to keep chickens in battery cages because of the extreme cruelty involved. Switzerland did so in 1992. However, imports of eggs from countries with much lower standards, such as US, cannot be stopped.