A new World Trade Organization dispute settlement panel report said that the U.S. improperly applied Section 301 tariffs on goods from China. “It remains to be seen whether the US decides to appeal the ruling,” former WTO official Peter Ungphakorn said in a tweet. “Since the Appellate Body cannot function, this would be an 'appeal into the void.'” The WTO appeals court is mostly inoperable due to a U.S. hold on adding new members.

During the monthly Dispute Settlement Body meeting at the World Trade Organization, the European Union said it adopted “additional and extraordinary” compliance measures by withdrawing all the remaining subsidies for Airbus on Aug. 21, and they said that was “substantially in excess” of what's required by the WTO rules. They said they did this in order to convince the U.S. to withdraw its tariffs on European goods, and with the intention that they would not impose tariffs over Boeing subsidies, after a negotiated settlement. “It is not in the interests of anyone that the European Union and the United States now proceed to, or continue, mutually assured retaliation, and certainly not in the current economic climate,” they said.

U.S. Trade Representative Robert Lighthizer and Japan's Foreign Minister Toshimitsu Mogi talked about the necessity of dispute settlement reform at the World Trade Organization, Japan said in an Aug. 26 press release, according to an unofficial translation. The release emphasized that the U.S. initiated the call, and said the need for reform is becoming more urgent.

Moldova's Tudor Ulianovschi told the Washington International Trade Association that the fact that he's coming from a neutral country is an advantage in his candidacy for director-general of the World Trade Organization. Ulianovschi, who was speaking Aug. 26 on a WITA webinar, served as foreign minister of Moldova in 2018 and 2019, and during that time Moldova became a member of the WTO government procurement agreement.

The Aug. 28 meeting of the World Trade Organization's Dispute Settlement Body in Geneva will include the European Union's arguments that with Airbus launch subsidies resolved, the billions of dollars in tariffs on French wine, Airbus planes, Scottish whisky and other products should be lifted. The U.S. will also weigh in.

The Office of the U.S. Trade Representative is soliciting comments on China's compliance with its World Trade Organization commitments, the agency said in a notice. Comments are due by Sept. 16. There will be no hearing this year, instead the Trade Policy Staff Committee will send written questions to commenters.

Amina Mohamed, Kenya's Sports, Culture and Heritage minister and its nominee to lead the World Trade Organization, said strengthening rules on industrial subsidies and reforming the Appellate Body are critical for the WTO's continued success.

British Member of Parliament Liam Fox said his experience as United Kingdom trade minister qualifies him to lead the World Trade Organization as director-general. Political skills, not technical ones, are needed in Geneva, he said during a July 30 Washington International Trade Association webinar.

Former U.S. trade representative Bob Zoellick laughed when a webinar moderator asked him how a pro-free-trade consensus can be re-established. Zoellick was on a Carnegie Endowment for International Peace webinar about the future of the global trading system with European Trade Commissioner Phil Hogan June 30. He said those who support free trade have always had a fight, because politics often align with protecting domestic producers from import competition.

The U.S. said that it has received no details on changes to subsidized loans for Airbus from France and Spain, so “no one can take seriously” that the changes addressed the entirety of the World Trade Organization decision that the subsidies distorted the market. The U.S. made the comments at a Dispute Settlement Committee in Geneva July 29, a Geneva trade official said. The U.S. representative also said the European Union didn't address the other six measures the WTO identified as distorting. The EU had said last week that the changes resolved the case, so the 15% tariffs on Airbus planes and 25% tariffs on other EU exports should be removed immediately (see 2007240057).