WASHINGTON, D.C. - House Ways and Means Committee Chairman Charles B. Rangel (D-NY) and Ways and Means Trade Subcommittee Chairman Sander M. Levin (D-MI) issued the following joint statement regarding the World Trade Organization (WTO) Appellate Body decision released on February 4, 2009, in the so-called “Zeroing" dispute with the European Communities:
“In its report, the Appellate Body mistakenly asserts the authority to resolve disagreements that the WTO Members were unable to resolve through negotiation. It has rejected the notion that the WTO Members could agree to disagree and move forward on areas of agreement and leave areas of disagreement for future negotiations.
“In fact, there are times when the text of an agreement simply does not address an issue. In those cases, the Appellate Body must recognize that sovereign nations simply have not bound themselves. Indeed, they expressly agreed that the recommendations and rulings of the WTO’s Dispute Settlement Body cannot add to, or diminish, the rights and obligations provided in the WTO agreements.
“Reading new obligations into the text of existing agreements will only undermine confidence in the Appellate Body and the WTO. Ultimately, this will make it more difficult to reach new agreements to liberalize trade. As we strive to complete the Doha Round of WTO negotiations, this report should give all negotiators cause for concern."
