EU Statement at Formal Trade Negotiating Committee/Informal Heads of Delegations Meeting, 30 November 2022

Statement delivered by Ambassador João Aguiar Machado

The European Union welcomes the opportunity to take stock and share our priorities as we start preparing for MC13. Let me start with highlighting areas in post-MC12 work since the summer.

Delivering a more effective WTO is our main and overarching priority. We must build on the good outcomes of MC12 and make sure that the process of WTO reform that we are engaged in produces results. The recent retreats on reform, agriculture and fisheries subsidies have provided useful material and were marked by a constructive atmosphere and broad engagement of Members. This gives us a good basis. But we call on Members to now engage constructively to advance on the process and have a structure in place to inform Members’ considerations on WTO reform. MC13 is not far away. In that context, we urge Members to take a decision on the MC13 venue so we can move forward and focus minds on the real issues. We also call on Members to unblock the process of selection of Chairmanships so that work can resume in these two Groups. We are of the view that the Troika has worked diligently and in full transparency and inclusiveness, and that its proposal reflects a balance and the views of the membership. We regret that even today a very small group of members has not been able to join consensus around this proposal.

On the fisheries subsidies agreement, the European Union has launched its internal process for the acceptance of the protocol and the agreement. We plan to deposit our instrument in 2023 well ahead of MC13. We encourage all Members to complete promptly their domestic ratification procedures so the agreement can enter into force as soon as possible.

The European Union further welcomes the positive steps in the implementation of the work programme under paragraph 8 of the MC12 Declaration on Food Insecurity. In our view, this can be a trust building exercise based on collaborative work of all Members, and one where the WTO can again show the critical role it plays at the heart of the world trading system.

Looking ahead to MC13, we need to start substantive deliberation on the e-commerce Work Programme with a particular focus on the development dimension. Termination of the moratorium would seriously undermine the WTO’s relevance for the digital economy. We very much hope that we can work both on a reinforced multilateral Work Programme and on the extension of the moratorium.

Turning now to WTO reform, activating an improved and fully functioning dispute settlement by 2024 through meaningful multilaterally agreed reforms remains the European Union’s top priority. We see the WTO dispute settlement system as vital for the credibility of a rules-based trading order. This is also the position of the vast majority of WTO Members. While the European Union is attached to a binding, two-tier and independent adjudication – which are the system’s core characteristics - we see ample scope for improvement. We want to see reform that makes dispute settlement more streamlined, more effective, and geared towards the prompt resolution of disputes. And the dispute settlement system should benefit all Members. Time is pressing, and 2024 is fast approaching. With this in mind, the European Union is keen to see reform discussions accelerating, and moving towards a new phase focused on identifying solutions for a limited set of issues that require improvement. The Membership cannot afford to miss the 2024 deadline to have a fully functioning dispute settlement system, which means finding a solution no later than MC13, which we expect to take place no later than March 2024.

We also see scope for an enhanced monitoring and deliberating function. We were encouraged by the interest expressed by many Members in this topic at the retreat. Besides the work on improving the practical functioning of WTO bodies, we see the need for more meaningful policy deliberation on major pressing trade policy challenges. To name a few areas: the nexus between trade and climate, addressing distortive state interventions and finding new ways to support developing countries facing difficulties in integrating into the global trading system and global value chains.

More generally, we see development as a fundamental issue that should be mainstreamed in the different and relevant bodies. At MC12, Members acknowledged the particular challenges that LDC graduation presents. The European Union stands ready to address LDC concerns notably in relation to their smooth transition as a priority for MC13.

On the negotiating function, we note good progress in the negotiations on the open plurilateral Joint Statement Initiative (JSI) on investment facilitation for development. Conclusion by MC13 is a priority. It is also crucial to achieve substantial progress on the JSI on e-commerce by MC13 given the economic weight of e-commerce in today’s economies, including its contribution to integrating developing country members into global trade. Finally, we need to complete the procedures to give legal effect to the outcomes on domestic regulation in services.

On agriculture, the European Union supports the need for a new approach. Members should integrate the issues of food security, environment, climate, poverty and sustainable production into the negotiations. The European Union suggests working on improving transparency in agriculture across all pillars, notably in areas linked to food security such as export restrictions and international food aid. Reforming trade-distorting policies also remains an urgency in terms of disciplines and transparency. We see this discussion as part of the necessary integration of food security and sustainability aspects.

Finally, on TRIPS, we thank Members for their input in the current discussions on whether to extend the TRIPS Decision to the production and supply of COVID-19 diagnostics and therapeutics. This input is instrumental in our ongoing internal consultations. We are analysing the aspects related to the supply, demand, production and distribution of COVID-19 diagnostics and therapeutics, including via licensing mechanisms and procurement by organisations such as the Global Fund and UNICEF. The situation is complex, and the definition of the products is not as straightforward as for COVID-19 vaccines. The European Union will continue to engage constructively in this debate.