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WTO losing focus as a trade body, says US

U.S. Trade Representative Robert Lighthizer said Dec. 11 that the World Trade Organization was becoming a "litigation-centered organization" instead of one that's focused on trade negotiation. He said it has also become too lax on rich developing countries such as China, Reuters reported.

"Too often members seem to believe they can gain concessions through lawsuits that they could never get at the negotiating table," Lighthizer said during the WTO's 11th ministerial meeting in Buenos Aires. "We have to ask ourselves whether this is good for the institution and whether the current litigation structure makes sense."

Lighthizer said there was also a need to "clarify our understanding of development within the WTO" given that rich countries are able to claim developing country status without providing evidence to support their claim. This practice, he argued, has resulted in wealthy members being given exemptions as developing countries.

Five of these countries, including Qatar and Singapore, have claimed developing status, allowing them a longer period within which to implement WTO agreements and gain more opportunities to boost trade, said Reuters.

"We cannot sustain a situation in which new rules can only apply to a few and that others will be given a pass in the name of self-proclaimed development status," Lighthizer said.