International Trade Law News

As expected, the House Ways and Means Committee today unanimously recommended by voice vote the rejection by the full House of H.J. Res. 27, a resolution withdrawing the approval of the Congress from the World Trade Organization (WTO) Agreement. While many members of the committee voiced their concerns over the WTO, including the tendency of WTO dispute-settlement panels to side against the U.S., the consensus was that WTO's problems are best resolved by the continued engagement of the U.S.

Even though the committee adversely reported the resolution, it will still be considered by the House. The timing for the floor vote has yet to be determined, but a vote is expected by mid-June. The House is expected to reject the resolution by a wide margin just as it did on a similar resolution in 2000, which was rejected by a vote of 363-56 vote. The Senate is not expected to consider the resolution.

Under the Under the Uruguay Round Agreements Act (URAA), the 1994 law that approved U.S. participation in the WTO, any member of Congress has the right once every five years to demand a vote by the full House or Senate on withdrawing from the WTO. On March 2, 2005, Rep. Bernard Sanders (D-VT) introduced H.J. Res 27 to withdraw the approval of the U.S. from the Agreement establishing the WTO. The resolution would not automatically pull the United States out of the WTO and does not require the President to withdraw the United States from the WTO. Rather the resolution merely states that Congress does not approve of U.S. membership in WTO.