The Productivity Commission has declared that the world’s rules-based global trading system is under threat due to the failure of the World Trade Organisation (WTO) to appoint new judges to its Appellate Body.
Releasing its latest Trade and Assistance Review, Chair of the Productivity Commission, Michael Brennan said that without the judges, appeals could not be heard and ruled on.
“It is important that Australia continues to promote open trade practices and seeks to revive the rules‑based system,” Mr Brennan said.
“Even before the outbreak of COVID-19, the era of the world’s rules-based trading system that led to open, prosperous global economies since the end of World War II had stalled.”
He said this was bad for business, and bad for jobs and income.
“In the absence of the WTO’s rules-based system, Australia should continue to work to promote alternative dispute resolution bodies, and continue negotiations on multilateral, plurilateral and bilateral agreements,” Mr Brennan said.
“In a post-COVID economy, trade will remain vital to economic growth. The promotion of open trade in goods, services and investment is going to be particularly important for economic recovery.”
He said the review showed a long-term reduction in tariff barriers across the Australian economy, as Australia had become a more globalised and competitive economy, generating benefits for consumers and exporters.
The Commission’s 43-page Review can be accessed at this PS News link.
