Dmitry Grozoubinski, founder of ExplainTrade, a trade and negotiations consultancy, agreed that the deal appeared to break WTO rules “a little bit.” In particular, he flagged the beef quota as a “new preferential quota for the U.S.”
Liam Byrne, the chair of the U.K. House of Commons Business and Trade Committee, said the government should collaborate with the EU to uphold their “shared ambition to safeguard international trade globally.”
His committee has recommended that the U.K. join the WTO’s alternative dispute resolution system, an initiative whereby countries can dispute unfair trade practices through the organization. The current system has been paralyzed since the U.S. blocked the appointment of judges in 2017, meaning any disputes are endlessly appealed — and never settled.
The U.K. is currently not a member, even though the dispute system includes 27 WTO members, including the EU, Canada, Australia and China — but notably not the U.S.
Two officials close to the WTO said the U.K. was keen to avoid irritating the U.S. by joining. As the MPIA, an interim solution to address the WTO impasse, was seen as a Brussels-led initiative, the previous government had been wary of any perceived alignment with the EU.
Trade Secretary Jonathan Reynolds previously told members of the House of Lords that the U.K. “should be looking to take forward” any moves to “strengthen the role of the WTO.”
U.K. Ambassador to the WTO, Simon Manley, said Britain’s joining the alternative dispute system is “under active consideration.”
A Department for Business and Trade spokesperson, meanwhile, said: “We are strong supporters of the WTO, which plays a vital role in providing stability and predictability for businesses and consumers around the world. This is the first step towards a legally binding Economic Prosperity Deal with the US, with further talks planned to build on what we have already agreed.”
