WTO: sanctions ‘a last resort’

Date: 03/10/02

WORLD Trade Organization chief Supachai Panitchpakdi says the US and EU should think twice before launching legal action over trade disputes.

The former Thai deputy prime minister told MEPs that trade sanctions should be a last resort and not deflect the WTO from its primary role of boosting world commerce.

Instead of being too quick to resort to dispute panels at the Geneva-based watchdog, Panitchpakdi urged countries to take up his offer to mediate before disputes go too far.

'I don't think we would be meddling. It would be us putting up some neutral studies or opinions,' he added.

Although the WTO allows countries to retaliate in cases where they have suffered from illegal protectionism, Panitchpakdi stressed that cooperation was often the best bet for both sides in a dispute.

Sitting alongside EU Trade Commissioner Pascal Lamy, he added: 'Game theory shows us that [with] cooperative solutions it's not a zero-sum game.'

World Trade Organisation chief Supachai Panitchpakdi says the US and EU should think twice before launching legal action over trade disputes.