By Bernama,
Kuala Lumpur : The European Union (EU) has raised concerns about rising levels of protectionism in US at the two-day World Trade Organisation’s (WTO) Trade Policy Review (TPR).
In a statement here Friday, the EU said it submitted more than 90 questions on aspects of US trade policy at the TPR, which ends today.
The EU said by drawing attention to trade barrier concerns in the US, the review played an important part in ensuring that the openness of the US market reflected its dominant position in global trade.
In its opening statement to the TPR meeting in Geneva on June 9, the EU drew attention to worrying signs of a re-emergence of protectionism in a number of policy areas in the US.
It noted, in particular:
* Mounting restrictive import requirements for security purposes that are imposing considerable burdens on EU exporters.
The EU raised doubts about the compliance of these measures with WTO rules, and their professed intent.
It said the new legislation on goods scanning was against a modern Customs approach of risk-based controls and provided no guarantee as regards improved security.
Instead, it said, the move would increase transaction costs, cause significant delays at ports and introduce huge burdens on exporters and Customs administrations worldwide.
* The fact that the US has not opted for a more reform-oriented agricultural policy in the new 2008 US Farm Bill.
The EU said the recently-enacted 2008 US Farm Bill has maintained the same trade-distorting character as its predecessor.
It urged the US to ensure prompt compliance with all WTO rulings and recommendations.
The EU also raised the issues of fisheries subsidies, intellectual property rights enforcement, sanitary measures for food products, RTA policy and constraints on investment in services sectors, such as financial services and telecommunications.
Trade policy reviews are an important part of the transparency function of the WTO, alongside its negotiation and dispute settlement functions.
They allow WTO members to review each other’s openness to trade and to raise questions and concerns about market barriers and compliance with WTO rules.