After a trilateral meeting yesterday, US, EU and Japan agreed to propose new global trade rules to the WTO address issues including subsidies and forced technology transfers. A joint statement was issued by US Trade Representative Robert Lighthizer, EU Trade Commissioner Phil Hogan and Japan Economy Minister Hiroshi Kajiyama. No specific country is mentioned in the statement, but the context is clearly directed to China.
Under the proposal four banned subsidy types would be added to WTO rules, including unlimited guarantees, subsidies to ailing enterprises without a restructuring plan, subsidies to firms unable to obtain long-term financing and certain forgiveness of debt. The three representatives also agreed to urge WTO members to address forced technology transfer issues and their commitment to effective means to stop harmful forced technology transfer policies and practices, including through export controls, investment review for national security purposes, their respective enforcement tools, and the development of new rules.
