WTO Ambassador Nominee Says Reform Possible
Joseph Barloon, who was a general counsel at the Office of the U.S. Trade Representative during Donald Trump's first term, told Sen. Maria Cantwell, D-Wash., that he believes in rules-based trade.
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Barloon appeared in front of the Senate Finance Committee June 3 as the president's choice for ambassador to the World Trade Organization, the heart of the rules-based trading order, which limits how tariffs can be applied, and enshrines the concept of non-discrimination, and the most-favored nation tariffs.
When Cantwell asked, "Do you think the White House has been following a rules-based trade regime," Barloon didn't directly answer. "I believe the White House has taken actions that are appropriate," he replied.
Cantwell said, in her view, the tariff policies of Trump's second term don't follow rules, but rather, are based on the philosophy of "I am all powerful, I can do whatever I want."
"I believe they've been throwing everything at the wall and seeing what sticks," she said.
She told Barloon that she'd just been visited by Washingtonians complaining that tariffs are making medical equipment more expensive.
In Barloon's opening statement, he said that the WTO was meant to be an agreement to lower tariffs and trade barriers among like-minded market economies. When the WTO admitted non-market economies, he said, it went astray.
He also complained that the dispute settlement system became a world trade court, seeking to create binding laws that the U.S. must follow.
"Despite these failings, I still believe the WTO may be able to reform in ways that will help it reach its original goals," he said.
Senate Finance Committee Chairman Mike Crapo said in his opening statement, "The WTO is an important institution, but in need of stronger American leadership. The last Administration failed to engage the organization in a number of areas, including negotiations on rules for digital trade. This weakened existing disciplines, including U.S. intellectual property rights under the WTO TRIPS Agreement."
He asked Barloon if he would be assertive in Geneva to advance U.S. digital trade interests. Barloon said yes, and added that discriminatory policies against U.S. firms in that arena "need to be addressed at the WTO."
He didn't specify which policies he meant.
Sen. Chuck Grassley, R-Iowa, complained to Barloon that he has not been kept in the loop on how trade negotiations are going to avoid higher reciprocal tariffs. He said he knows there are serious negotiations with about 18 countries, and said he wants them to be successful, but said, "while we're spending time on very difficult negotiations with these big trade partners," like South Korea, Japan, India, Indonesia, China and Europe, he's worried that free trade agreements with sub-Saharan African countries, like Kenya, are being neglected. He noted that FTAs with Chile, Colombia, Panama, Peru, Oman, Bahrain, Singapore, Australia and CAFTA members led to a combined trade surplus of more than $55 billion annually.
Barloon replied, "I agree that we have achieved tremendous success by having arrangements and agreements, particularly for opening agricultural access."