Wire Line

April 2010

WTO Membership Up for a Vote

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The US House of Representatives will take up a privileged resolution sometime this year calling for the United States to withdraw from the World Trade Organization (WTO). The Uruguay Round Agreements Act that Congress passed in 1994 contained a provision that essentially requires Congress to vote every five years on whether our government should remain a member of the WTO. A withdrawal resolution in the House attracted 56 votes in 2000 and 86 votes in 2005.

Any member in Congress can force a vote every five years under the law establishing US membership in the trade body. The earliest such a vote could happen is June, assuming a lawmaker introduces a resolution of disapproval. Such a resolution is privileged, meaning it is subject to expedited consideration and must be voted up or down without amendments.

Lead sponsors of the resolution in 2005 were Sen. Bernie Sanders (I-VT) when he was still in the House and Rep. Ron Paul (R-TX). While the measure is expected to fail again, if proponents of ending US involvement in the WTO get more votes than in 2005, they can claim momentum is on their side. By contrast, if the ranks of supporters remain relatively small, critics could argue they still only represent a radical minority in the House.

The process is triggered by the annual March 1 report of the president to Congress on its trade agenda for the coming year. Transmission of the report starts a 90-day clock - minus any days not in legislative session and weekends - for any lawmaker to introduce a simple one-sentence joint resolution withdrawing the United States from the WTO. After introduction, a 45-day clock begins for consideration by the House Ways and Means and/or Senate Finance committees. Within that time, the panels must report the resolution or it is discharged directly to the floor where debate is limited to 20 hours with no amendments.

Membership allows the United States government to challenge the trade practices of other nations within the rule of law. If China, the European Union or other WTO members are violating their commitments, the United States can present its case before an impartial WTO panel of trade exports. Between establishment of the WTO in 1995 and mid-2007, the US government had successfully used the WTO dispute-settlement system to open foreign markets in 53 cases, 28 by winning a final judgment on the core issues of the complaints and 25 by settling favorably before completion of the case.

The Obama Administration, although its free-trade credentials have been called into question by many Republications and some in the business community, is clearly on board with continued WTO participation.

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