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 is the Johan Verheij Memorial Professor of Law at Case Western Reserve University School of Law. His books include Business and the Roberts Court and Marijuana Federalism: Uncle Sam and Mary Jane.
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