The struggle the U.S. is having to manage the COVID-19 pandemic is a higher priority than what's happening at the World Trade Organization, said Dennis Shea, U.S. ambassador to the WTO. He noted that the U.S. has a third of the world's reported cases of the disease, and that more Americans have died from COVID-19 than citizens in any other country.

The director general of the World Trade Organization will resign in August, citing personal reasons and adding that the organization needs a new leader for “post-COVID realities.” Roberto Azevedo made the announcement during a virtual meeting with WTO members on May 14, saying he hopes the WTO continues its reform efforts. He also urged members to “promptly move ahead” to select the next director general. “I urge you not to treat the process of selecting the next DG as business as usual. This organization must start 2021 … ensuring that the multilateral trading system responds to new economic realities, above all the post-COVID recovery,” Azevedo said. “It cannot afford to be distracted by a protracted search for a new DG.” Azevedo will officially step down Aug. 31, one year before his term was set to end.

House Energy and Commerce Committee Chairman Frank Pallone, D-N.J., and Rep. Peter DeFazio, D-Ore., want the U.S. to withdraw from the World Trade Organization. If their resolution, and the resolution introduced by Sen. Josh Hawley, R-Mo., were to pass before the deadline set up in the agreement that founded the WTO, and Trump either signed it, or they overrode his veto, the U.S. would exit the institution. “It is time for the United States to withdraw from this institution and start prioritizing American workers over international corporations,” Pallone said in a press release.

The U.S. said that it's resolved the Boeing subsidy dispute at the World Trade Organization (see 2005060052), and a spokesman for the European Union said May 7 that the EU doesn't agree. “While the EU is still examining the impact of the legislative action concerning the Washington State [business and operations] tax, the EU notes that the rulings in this dispute cover a number of additional measures where the US remains non-compliant (including NASA and Department of Defense Research and Development measures and certain State and local measures),” the spokesman said. He said that the EU is ready to continue discussions with the U.S. to negotiate a balanced solution that would resolve both the Airbus and Boeing subsidy cases.

Canada, Mexico, China, the United Kingdom, Japan and an assortment of other countries around the world said the World Trade Organization has an essential role to play in ensuring the continued flow of essential goods -- including medical supplies -- across borders. “We stress that trade restrictive emergency measures aimed at protecting health, if deemed necessary, shall be targeted, proportionate, transparent and temporary, not create unnecessary barriers to trade or disruption to global supply chains, and be consistent with WTO rules. We pledge to lift any such measures as soon as possible,” the statement said. “We also stress the necessity of maintaining agriculture supply chains and preserving Members' food security. We, therefore, pledge to not impose export restrictions and to refrain from implementing unjustified trade barriers on agricultural and food products in response to the COVID-19 pandemic.” No country in the European Union signed the statement, issued May 5, nor did the U.S.

China said it has joined 17 other World Trade Organization members to create a temporary dispute settlement system (see 2004150013) to solve trade issues despite the paralysis of the WTO’s dispute settlement body (see 2001240027). The temporary body will ensure “consistency and predictability” of rulings, China said in an April 30 notice, according to an unofficial translation. The “ultimate goal” of each participating WTO member is to “restore the normal operation of the appeal body,” China said.

Canada said earlier this week that it intends to ask for World Trade Organization permission to retaliate for the U.S. countervailing measures on supercalendered paper that ended in 2018 but were ruled out of bounds in February 2020 by the WTO appellate body (see 2002060059). Supercalendered paper is glossy paper used in advertising inserts, catalogs and magazines. The U.S. had levied 20.18% and 17.87% countervailing duties on two Canadian companies in 2015.

The World Trade Organization is forecasting a huge hit to trade around the world, but how bad it will be depends on how long the lockdowns persist, the organization said April 8. In an optimistic scenario, restrictions on movement are lifted after three months. In a pessimistic scenario, they're lifted (or partially lifted) after six months. And in the worst-case scenario, the stay-at-home orders last for a year, and even after they're over, a lot of the people who lost their jobs do not get back to work, so big-ticket purchases like cars and major appliances continue to be depressed in 2021.

Trade in products that are in severe shortage during the coronavirus COVID-19 pandemic accounted for 1.7% of world trade in 2019, according to a new report from the World Trade Organization. Although many of the medical products that are traded face no tariffs in many countries -- medicines rarely face a tariff, and they account for more than half the traded value -- there are goods that still face high tariffs. The WTO said the average applied tariff for hand soap is 17% and the average tariff on protective gear such as gowns, gloves and masks is 11.5%.

Japan asked the World Trade Organization to establish a dispute settlement panel on the matter of India’s increased tariffs on information and communication technology goods, according to an unofficial translation of a March 19 notice. The announcement came after Japan said it was unable to reach a resolution with India after requesting WTO consultations last year (see 1905100020). Japan said India’s tariffs violate the WTO’s General Agreement on Tariffs and Trade and place unfair tariffs on a range of mobile phones, “digital microwave communications” devices and more. The WTO dispute settlement body, which has been inactive after President Donald Trump blocked appointees last year (see 1912090031), is expected to remain inactive beyond 2020 (see 2003060035). A group of WTO members announced in January plans for an interim appeals process (see 2001240027).