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Chamber of Commerce chief Schweitzer: German economy suffers particularly badly from WTO dispute

2019-12-29T08:44:06.959Z


25 years of the World Trade Organization, but in the face of a dispute with the United States "unfortunately there is no happy birthday," says Chamber of Commerce chief Schweitzer. The effects are enormous for the German economy.



The World Trade Organization (WTO) has been paralyzed for weeks by a US blockade. From the perspective of the German Chamber of Commerce and Industry, this affects German companies in particular. "The erosion of the WTO by the unused dispute settlement affects the internationally networked German economy particularly hard," said DIHK President Eric Schweitzer. It is dependent on world trade with fair rules.

"Two thirds of Germany's non-European exports are based solely on WTO rules," said Schweitzer. "This affects our trade with the United States, with China and also with Russia. Without the WTO, there is a threat to the right of the stronger instead of the strength of the right in global trade."

The WTO is the successor to the General Agreement on Tariffs and Trade (GATT). For the anniversary, she is in a deep crisis. The United States has been preventing the appointment of new experts to the appeals panel in the dispute settlement mechanism for months (read a background text on the dispute here). This is incapable of action. "25 years of the WTO would actually be a reason to celebrate. Unfortunately, there is no happy birthday for world trade," said Schweitzer.

"Grand coalition of the willing" necessary

US blockade of WTOFriss out of my hand or die

The EU and Germany should quickly lead a "grand coalition of the willing" for a broad initiative. "This would ensure the enforcement of WTO law at least between the 'likeminded countries' - and thus a little more legal certainty for German companies."

In addition, world trade rules should keep pace with the major economic changes since 1995. "Especially when it comes to subsidies and e-commerce, companies need modern and fair global rules," said Schweitzer. "It is also important that the WTO agree on an agenda for small and medium-sized companies in order to facilitate the integration of small and medium-sized businesses in global value chains."

The WTO has opened markets for 25 years and kept trade barriers low. "So it is worthwhile to stand up for the world trade system and to fight for its preservation. The German economy has not yet written off the WTO and hopes for a successful WTO ministerial conference in June 2020."

Source: spiegel

All business articles on 2019-12-29

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