Labor welcomes the announcement that Australia and 15 other members of the World Trade Organisation have agreed to a temporary fix to resolve international trade disputes.
At a time of deep economic crisis, it is critical that Australian jobs are supported by a robust global trading system that encourages and provides certainty to Australian exporters.
The WTO’s Appellate Body was rendered functionless in December after the United States consistently blocked the appointment of new members.
The Appellate Body is a key component of the multilateral global trading system that has helped to underpin economic growth and lifted more than one billion people out of poverty around the world.
Its demise was bad news for Australia, which has two disputes pending in the WTO: a claim against India over sugar subsidies and another against Canada in relation to our wine exports.
Labor has called for all parties, including Australia, to find a permanent resolution to this crisis.
Under stop-gap measures now being put in place, Australia, the European Union, China and 13 other WTO members have agreed to allow appeals on trade disputes to be heard by a pool of 10 arbitrators.
The Shadow Minister for Trade, Madeleine King, said: “Although not unexpected, it is regrettable that the US and India are not part of this important development in rebuilding confidence in the WTO.”
Ms King said while Australia is rightly turning all its efforts to dealing with our most grave health crisis, we must keep an eye to the future and the revival of the global trading system which will be forever changed after the slowdown caused by the coronavirus outbreak.
“Labor welcomes this announcement as an important step in Australia playing a leadership role in ensuring a permanent solution can soon be found that will restore the appeal function of the WTO, to the benefit of Australia’s export industries,” she said.