The Corner

Averting a Trade War

There is no doubt that a WTO complaint against the EU’s anti-GM food regulations will ratchet up trade hostilities with some European nations. This is no reason not to file the complaint, but it is a reason for the Bush Administration to take it’s WTO obligations more seriously. The EU is preparing to impose substantial sanctions on the United States after winning a WTO case against trade restrictive tax breaks. If imposed, the sanctions will hurt consumers and companies on both sides of the Atlantic. A better course would be for the Administration to recognize the legitimacy of the WTO judgment and change the tax rules to confrom to WTO rules.

Jonathan H. Adler — Jonathan H. Adler teaches courses in environmental, administrative, and constitutional law at the Case Western Reserve University School of Law.

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