It is an honour for me to lead the EU delegation at the 15h Trade Policy Review of the European Union today. On behalf of the EU, I would like to thank Ambassador H.E. Mrs. Pimchanok Pitfield (Thailand) for acting as discussant for this review, as well as the Chair of the Trade Policy Review Body, Ambassador H.E. Mr. Almoqbel (Kingdom of Saudi Arabia) also for the setting the scene. I would like to extend our appreciation to the WTO Secretariat for their hard work on the Secretariat report.

The EU attaches great importance to the monitoring and transparency functions of the WTO for which the Trade Policy Review Mechanism is a key tool. It is an intensive process for the Member under review. I don’t need to repeat the figures already mentioned by Ambassador Almoqbel. Just to reassure you that in addition to the 1200 questions we already replied to, we will of course respond to the questions received after the deadline.

The European project started almost seventy years ago to bring peace and prosperity to a group of countries that had often been in conflict. The Treaty drafters opted to use economic instruments to bring Member States together into a common market without internal borders. The pursuit of a single, common trade policy was one of its most important features and this  remains the case to this day.

The economic integration brought about by the EU’s single market, and its openness to the world has benefitted not just EU Member States, companies and citizens, but all of our trading partners as well. In the same way that our Member States are anchored in the EU, the rules-based multilateral trading system remains a strategic anchor for the EU’s trade policy.

Today, despite the challenging trading environment, EU trade policy continues to be driven by the principle of openness. Openness keeps the EU competitive and is the bedrock of our long-term competitiveness and prosperity.

Let me illustrate our openness with some figures:

EU trade with the rest of the world represents over 16 % of world trade, counting both goods and services. This is more than the EU’s share in global GDP, meaning we punch above our weight in the area of trade. The EU is the world’s largest single trading entity and the number one trading partner for 53 countries around the world that represent almost half of the world’s GDP. We are the first partner of Asia as a whole, Africa, the US, the Western  Balkans and the EU’s Neighbourhood.

Despite a rising tide of protectionism around the world, the EU maintains very low tariffs: the average weighted tariff on our imports is below 4%. These low tariffs are complemented by a wide network of preferential trade agreements and arrangements that continued to grow during the review period and will go on growing.

The EU is the world’s largest investor abroad, with 34% of the global total. It is also the most attractive destination for investments, hosting a stock of investments of more than 10 trillion euro, or 28% of the global stock.

Openness is a key feature of other policies too. The EU practices openness in international public procurement markets and is one of its main advocates.

This open trade policy is underpinned by unparalleled strict disciplines on subsidies within the EU providing a safeguard against market distortions.

The commitment to openness extends also to our approach to supporting development.

For five decades, the EU Generalised Scheme of Preferences has supported vulnerable countries to grow in a sustainable manner by giving them preferential access to the EU market. Our GSP system is the most comprehensive in the world in terms of market access offered. The EU currently grants partial or full tariff reductions for two-thirds of tariff lines to 19 countries under its GSP and GSP+ schemes. The Everything But Arms (EBA) arrangement, gives Least Developed Countries (LDCs) tariff-free, quota-free access to the EU market for all products except arms and ammunition. 46 Least Developed Countries benefitted from the EU’s EBA in 2022. Thanks to EBA, only 5% of EU imports from LDCs actually paid a tariff in 2021. In the review period, the EU is revamping its GSP system to make it more sustainable, more flexible and to focus the advantages on those most in need.

To support developing countries’ integration into the world economy, poverty reduction and sustainable development, Aid for Trade is a crucial tool. The EU and its Member States collectively constitute the world's largest Aid for Trade donor, accounting for around 40% of global Aid for Trade.

To bridge investment gaps beyond European borders, the EU launched Global Gateway. Our aim is to mobilize EUR 300 billion by 2027 in smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world.

During the review period, we have experienced serious external shocks, which have impacted the global economy and revealed weaknesses in international supply chains.

Russia’s unprovoked, unjustified and brutal invasion of Ukraine brought war once again to our continent, resulting in an unspeakable loss of life and devastating destruction. The EU will stand with Ukraine as long as it takes. For trade relations that means the EU has granted temporary trade liberalisation –

the suspension of all remaining customs duties, quotas and trade defence measures on Ukrainian exports to the EU.

We provide massive financial support, including macro-financial assistance of EUR 18 billion this year to cover the budgetary needs of Ukraine and we provide EUR 1 billion for fast recovery to re-build critical infrastructure. As the most important sign of our political commitment, the EU decided to grant candidate country status to Ukraine - this is also a logical step economically to start closer integration of Ukraine into our Single Market.

We are now discussing our 11th package of sanctions against Russia, in coordination with international partners. Our sanctions are designed and targeted carefully at Russia’s military and industrial capacity to wage its barbaric war.

Since this is also a war of disinformation, let me clearly dispel any confusion: EU sanctions do not target food or fertilizers and they are not the cause of the looming food crisis around the globe. On the contrary, the EU created the Solidarity Lanes to continue to support Ukraine and preserve its capabilities to export its grains. Ukrainian production is critical to feed the world and keep food prices down, in face of the huge challenges posed by the Russian aggression.

EU trade policy had to react to the major external shocks that we are experiencing. As a result, it has become more assertive, while remaining fully consistent with the law and spirit of the WTO. We have taken legislative action to better protect the Single Market from unfair practices. The International Procurement Instrument will strengthen reciprocity in public procurement. Our new Foreign Subsidies Regulation creates a framework to deal with unfair subsidies affecting operations, procurement, and mergers in the EU’s Single Market.

But this is not enough.

In the current geostrategic environment of increased uncertainty and risks, marked by systemic rivalry, there is a growing need for a comprehensive economic security strategy that brings together in a coherent fashion internal and external action and deepening our understanding of the risks we face. These include notably the risk of economic coercion and more broadly the risk of weaponization of dependencies.

We are therefore assessing our strategic dependencies and we are in the process of adopting an anti-coercion instrument.

More broadly, the Commission will publish later this month a Communication on economic security which will continue to be anchored in the WTO and stress the need for a well-functioning rules based trading system.

The EU has despite the challenges remained during the review period steadfast in its commitment to openness and multilateralism.

For instance, during the pandemic, we managed the shocks better thanks to openness and diversification. For every dose of vaccine distributed inside Europe, one dose was shipped abroad. Our vaccine export authorization scheme was fully transparent and provided exceptions in favour of the most vulnerable countries. Further, we have increased our support to the development of manufacturing capacity in other parts of the world.

But economic openness is of course not confined for us to internal and autonomous measures, or to just our own choices. It is about cooperation with partners and globally, too, rooted in the rules-based international order.

The rules-based multilateral system governs the majority of EU trade and remains our best guardrail against global economic fragmentation. The EU has a fundamental strategic interest in a strong and reformed WTO. This is why we put the multilateral trading system at the centre of our trade strategy during the review period.

However, there is no rules-based system without an ability to enforce those rules. A fully functioning Dispute Settlement System by 2024 that preserves the core characteristics of the system put in place in 1995 - binding, two-tier and independent adjudication - is the most critical goal that the Organisation has to achieve. This will be the key issue for MC13.

In the meantime, the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) preserves a fully functioning dispute settlement system among its participants. The EU invites WTO Members to join the MPIA as the best interim solution until a permanent one is found.

The EU plays a proactive and positive role in the WTO in other areas too. The Secretariat Report highlighted the EU’s key contributions in the run up to and at MC12 across the full range of topics, promoting a more effective multilateral trading system. We have tabled proposals and submissions on WTO reform, trade and health, e-commerce, fisheries subsidies, food security, and tradedistorting policies in agriculture.

Moreover, the EU participates actively in the intensive work of Joint Statement Initiatives on e-commerce, investment facilitation for development and services domestic regulation. These open, flexible, plurilateral initiatives are vital for the negotiating function of the WTO. They demonstrate that the WTO can deliver on issues that are pertinent for modern trade.

In this vein, we also look forward to the renewal of the WTO’s e-commerce Work Programme at MC13, and to the continuation of the moratorium on customs duties on electronic transmissions. Together with the JSI on e6 commerce, this is important to make a timely contribution to the digital transition we all have to deal with.

The EU will continue its leadership in the agricultural negotiations calling for solutions to food security challenges, improved transparency, as well as reforms of agricultural policies towards less trade distortion and towards more environmentally sustainable approaches.

The EU is also keen on promoting the positive contribution that the WTO can play in the fight against climate change and environmental degradation. We are actively participating in three plurilateral initiatives, namely, the Trade and Environmental Sustainability Structured Discussions, the Dialogue on Plastic Pollution, and Fossil Fuel Subsidies Reform.

The EU also proudly co-leads political level dialogue on trade, climate and development in the Coalition of Trade Ministers on Climate. Conscious of the need for all to be involved in what is the global challenge of our age, we are also now feeding the multilateral debate on this through a revitalised Committee on Trade and Environment.

During the last Ministerial Conference, the EU was instrumental to find the necessary solutions on fisheries subsidies. Now we are working to give effect to what was agreed. The internal EU procedure for the acceptance of the fisheries subsidies agreement is finalised. The EU stands ready to contribute to the to the WTO fisheries funding mechanism to assist developing countries to implement

the new disciplines, and as you are aware some EU Member States have already announced contributions.

MC12 put the WTO back on track because it delivered on specific files that matter, but also because Members were ready to acknowledge the need to reform. MC13 must confirm that we are on our way to a more effective organisation. This requires first and foremost a fully and well-functioning dispute settlement mechanism, as well as other concrete outcomes in the process of WTO reform.

A second focus must be for the WTO to tackle the critical topics for global trade today. If the WTO is unable to respond to the challenges of our time, there is a serious risk of the erosion of the system and loss of credibility.

This is why the EU has submitted recently its Communication on “Reinforcing the deliberative function of the WTO to respond to global trade policy challenges”. This Communication covers the areas of state support, environment and inclusiveness.

Taking deeper policy deliberation forward as part of WTO reform could not only reinforce the WTO as the key international forum for global trade governance but could also help members when designing their domestic policies in response to these global challenges.

The most pressing challenge we are all facing is how to drive the green and digital twin transitions with the development of the right policy framework.

Climate change – magnified by environmental degradation - is the civilizational challenge of our time. We must tackle it as a global community. And we must act now.

Openness and sustainability have to go hand in hand.

The EU is fully engaged internationally and domestically to create the drivers of the green transition and climate neutrality.

The EU’s “Net Zero” goal is our central policy objective responding to this challenge, and our trade policy is playing its role here.

The EU has laid out the path towards climate neutrality by 2050 through the ambitious 55% reduction of greenhouse gas emissions goal by 2030 under the European Green Deal.

The Green Deal comprises many policy actions tackling reduction of carbon footprint and halting biodiversity loss from a number of angles. Boosting circular economy, creating sustainable food systems, greening of our Common Agricultural Policy, investing in renewable energy are just a few examples of the policy initiatives taken in this context.

The European Green Deal is not only our plan to fight climate change and to become the first climate-neutral continent. It is also our growth model for a prosperous, responsible and resilient economy.

To this end, we also need a regulatory environment that allows us to scale up the clean energy transition quickly. Driving the green transition at the EU level helps us prevent the fragmentation of the EU internal market and maintaining this EU Single Market benefits EU and third country traders alike.

The Repower EU communication, the European Critical Raw Materials Act, the reform of the electricity market design, the Net-Zero Industry Act are key enablers of the EU industry’s contribution to the global green transition.

Drawing on the lessons learnt from the Covid-19 pandemic and the energy crisis sparked by Russia's war on Ukraine, these measures will help increase the resilience of Europe's clean energy supply chains, while diversifying partnerships to support others in their green transitions.

We were pleased to see your interest in the new reformed common agricultural

policy, which became applicable in January this year. Our modernised policy is expected to contribute to the efforts in the green transition. It also continues on the path towards market orientation and away from trade-distorting support.

We have received a lot of questions on the EU policy framework related to the green transition. Individual measures belonging to the European Green Deal package such as the Carbon Border Adjustment Mechanism, Farm2Fork and our measures against deforestation are followed closely by many WTO Members.

Let’s be clear: domestic policy-making is essential to deliver on the Paris Agreement commitments we all made. Non-action is not an option. And addressing the climate challenge is obviously not something that the EU can do on its own. The question is not “if”, but how we design policies while ensuring their WTO compatibility and minimising the negative spill-over effects.

As we all act to reduce our carbon footprints, we must acknowledge that there might be some impact on trade. This is why the EU is committed to full transparency and non-discrimination when it comes to designing our measures and when it comes to implementation of these measures. As we have done during the review period, we will continue full engagement and cooperation with our trading partners in the context of this TPR exercise, in appropriate WTO bodies, including in the Committee on Trade and Environment, as well as bilaterally.

The EU is taking a pro-active stance on the implementation of the Green Deal. Our outreach is aimed to ensure that measures can be implemented in a manner that avoids unnecessary impacts on trade. We will continue to facilitate implementation through guidelines and cooperative instruments. Addressing concerns of our developing and least developed partners is a priority area within the capacity building, and the technical assistance we provide. We are also deploying funding streams through Global Gateway to help plug the global investment gap in this area.

Let me be very clear: we will not succeed in this transition if we do not succeed in the coordination of our national measures.

So, I would like to stress, the adoption of EU legislation like CBAM or the Deforestation instrument will go together with an intensification of our efforts to cooperate with our trading partners in responding to fundamental global challenges both in the WTO and bilaterally.

Now turning to other Single market developments that has attracted the interest of other WTO members.

Digital transformation is another key priority for the EU. During the review period, the EU made strides in the implementation of the Digital Single Market strategy.

We are updating our regulatory toolbox to reflect the increased socio-economic importance of the digital economy and to ensure safe, fair, transparent and contestable digital markets.

To this end, we have adopted the Digital Services Act, which aims to make the Internet safer and protect fundamental rights, and the Digital Markets Act, with the objective of injecting greater competition and innovation into digital markets.

We have also put forward proposals on data, artificial intelligence and cyber resilience in order to strengthen the policy framework and enhance trust in and safety of the digital market, foster innovations and help create a level playing field.

Government support to industrial sectors is increasingly a sign of our times and it is necessary to drive the green and digital transitions. Such intervention must however always be well-designed and non-discriminatory to ensure healthy competition and to minimise negative spill-overs on other WTO Members.

In the EU, our subsidy policies have been temporarily adapted to the current circumstances, for example in order to accelerate the green transition. But we are doing this while maintaining the key features of state aid disciplines: we remain WTO-consistent; we ensure that subsidies are limited to the strictly necessary; and minimise the impact on trade and competition.

As we have stated in our submission on reinforcing the deliberative function, the WTO is the place to establish the international consensus on what are the acceptable parameters for countries’ interventions in support of industrial sectors and their impact on trade. We propose to launch a deliberative track at MC13. Ministers would then take decisions on the way forward at MC14.

In order to maintain societal support for open trade, it is indispensable that the benefits of trade are distributed in an equitable manner. To achieve that, we need an active social policy and trade policy that contributes to this.

Trade policy can play a role in promoting social justice, participation of women in trade and facilitate trade for SMEs. The trade policy review mechanism provides a good opportunity for WTO Members to exchange experiences on policies that facilitate inclusive trade.

A key for inclusiveness is transparency and dialogue with stakeholders. Transparency is engraved in the fabric of our overall policy making. The EU’s Better Regulation practices ensure evidence-based and transparent EU lawmaking with an open public consultation available also to non-EU citizens, businesses and stakeholders, as well as to all WTO members. We also publish all key documents of trade negotiations. This is all to ensure that those who may be affected by a policy of the EU can be heard.

The EU has pursued these objectives in bilateral trade agreements and in the WTO, and we want the WTO to go further. We would support multilateral work on the theme of trade and inclusiveness, on the one hand to better understand the distributional impacts of trade, and on the other to better cover social and developmental aspects.

To conclude, we very much welcome this trade policy review as an opportunity to engage with Members on the whole range of our policy developments that are relevant to our trading partners. We look forward to showing that the EU remains committed to openness and to rules-based trade. We are ready on this basis to continue to work with you towards a more effective WTO that can help us all in delivering on the trade challenges that we face.

Thank you very much.