3. FOLLOW-UP TO OUTCOMES OF MINISTERIAL CONFERENCES

     A. MC12

I. WTO REFORM – "REFORM BY DOING" - STATEMENT BY CHAIRPERSON (JOB/GC/359/REV.21; G/L/1523)

II.   PARAGRAPH 24 OF THE MINISTERIAL DECLARATION ON THE WTO RESPONSE TO THE COVID-19 PANDEMIC AND PREPAREDNESS FOR FUTURE PANDEMICS – STATEMENT BY THE CHAIRPERSON (G/L/1521)

III.  PARAGRAPH 8 OF THE MINISTERIAL DECISION ON THE TRIPS AGREEMENT – DURATION OF EXTENDED DEADLINE

There is still a lot of work to do in this final stretch ahead of MC13. We all need to show flexibility and willingness to reach landing zones if we want MC13 to be the first truly “reform ministerial.".

The European Union welcomes the processes that are ongoing on the different issues, including the work on reform by doing.

We need to find workable solutions to key negotiations for MC13, such as dispute settlement reform, agriculture, and fisheries subsidies. We also need to identify a way forward on the issue of the e-commerce moratorium and work programme.

We also need to agree on how the WTO can work post-MC13 on key issues for the multilateral trading system.

On the WTO’s response to the COVID pandemic, the European Union welcomes the work undertaken in the subsidiary bodies of the CTG on experience-sharing relating to the trade challenges that emerged from the COVID-19 pandemic.

We believe that this type of technical work was not only useful to help identify solutions and best practices during the pandemic itself but can serve as a model for future pandemics and similar trade-disruptive events.

We especially welcome the outcome document agreed upon in the Committee on Market Access, which attempts to draw conclusions and provides a useful summary of the work done. We welcome that the report endorses and highlights these conclusions.

On TRIPS, while the European Union is ready to engage in the discussions on whether to extend the scope of the Ministerial Decision to COVID-19 therapeutics and diagnostics, we note that little progress has been made in this complex discussion and the positions of Members remain far apart.

It is clear to us that there is no consensus on this issue among the Members.

The European Union remains ready to engage constructively and therefore considers that the discussion should continue in order to find a consensual solution.

4. WORK PROGRAMME ON ELECTRONIC COMMERCE

The European Union welcomes the intensified engagement we have seen on development- and digital trade-related issues since MC12. We are glad to see that the Work Programme has been truly reinvigorated, particularly in line with its development dimension.

The Work Programme discussions on the challenges and opportunities of e-commerce are extremely important for developed and developing countries alike.

The extension of the moratorium, along with the e-commerce Work Programme, at MC13 remains one of the European Union’s key objectives. The European Union notes the clear support for the extension expressed at the dedicated sessions of the Work Programme, due to its key importance to the development of the digital economy and trade. Evidence shows, and yes, there has been evidence presented, showing, among other things, that the benefits largely outweigh foregone customs revenue.

The moratorium facilitates access to digital services for businesses and consumers worldwide, and in particular MSMEs in developing countries. The moratorium is key to ensuring that developing countries reap the benefits of the digital economy.

In this context, we welcome the proposal by 23 members to renew the moratorium until MC14 and for a continuation of the discussions in the Work Programme, even if it falls short of our objective of achieving a more stable solution. We further welcome the proposal for the draft decision by the ACP countries and appreciate a number of common elements.

On the other hand, we do not share the proposal by South Africa to terminate the moratorium and thus jeopardise the transition towards a digital economy for developing countries.  The moratorium does not in any way prevent or limit domestic policy space to raise revenue by applying non-discriminatory consumption taxes such as VAT or GST or to promote competition in digital markets. These objectives are better achieved in other ways that do not harm the productivity and competitiveness of domestic businesses, particularly MSMEs. 

I would finally like to thank the Mauritius Ambassador for her efforts in facilitating our Work Programme discussions.

9. LDC GRADUATION (ANNEX 2 OF WT/GC/W/807/REV.2) – REPORT BY THE CHAIRPERSON OF THE COMMITTEE ON TRADE AND DEVELOPMENT TO THE GENERAL COUNCIL (WT/COMTD/LDC/30)

I would like to thank the Chairperson for his leadership in conducting the discussions on the LDC graduation proposal Annex 2, and for the summary report he presented.

The challenges involved in LDC graduation merit a specific response from the Membership, and this is why the European Union is engaging constructively on Annex 2 of the LDC proposal.

The European Union is ready to continue the analytical work on Annex 2 of the proposal, and we are ready to find a solution to the “specific measures” in Annex 2.

The European Union is in favour of flexibilities that are needed and justified. To facilitate a smooth transition by LDCs, we would suggest that members conclude their examination of the list of provisions proposed by the LDC Group in order to establish a “menu of measures” for which LDCs can request a short, time-limited extension after graduation. This would then require individual LDCs to justify their request based on needs and evidence for the provisions to be extended well before they graduate.

10. PROPOSED REVISIONS TO WT/L/452 "PROCEDURES FOR THE CIRCULATION AND DERESTRICTION OF WTO DOCUMENTS" – COMMUNICATION FROM AUSTRALIA; BRAZIL; CANADA; COLOMBIA; COSTA RICA; EUROPEAN UNION; NEW ZEALAND; NORWAY; SWITZERLAND; SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU; THE UNITED KINGDOM AND THE UNITED STATES (WT/GC/W/897/REV.1)

The European Union, of course, fully supports the statement made by Canada. And we encourage Members to engage with this proposal.

11. MC13 – IMMEDIATE STEPS TO RESPOND TO FOOD INSECURITY – COMMUNICATION FROM SINGAPORE (WT/GC/W/908)

The European Union would like to thank Singapore for its communication and Ambassador Tan for the useful clarification in his statement. The food security challenges will remain at the top of our agenda in WTO. This is also natural considering a majority of WTO membership is developing countries. In that sense we see value in this proposal.

An outcome on food security at MC13 should be the immediate focus considering the current crisis and needs of many vulnerable countries.

Elements of such outcome could include enhanced transparency on areas related to food security challenges (such as food aid, export restrictions) as well as clarifications of the rules on export restrictions which would limit their unjustified use.

The proper functioning of the markets is essential so that supplies can reach those that need them most. Any measures, which restrict trade, must be limited to what is necessary and be strictly proportionate.

WTO rules allow export restrictions on food in the certain circumstances of threats to food security but we as WTO Members should do more on a commitment to avoid unjustified export restrictions and to take into account the impact on net food importing countries.

Transparency and effective monitoring of export or restrictions are crucial for a predictable international trading environment and international food security.

Moreover, sustainable food systems and resilient agricultural productions are part of the solution addressing the global food security challenges we are facing.

12. PROPOSED MINISTERIAL DECLARATION FOR THE THIRTEENTH MINISTERIAL CONFERENCE: STRENGTHENING REGULATORY COOPERATION TO REDUCE TECHNICAL BARRIERS TO TRADE – COMMUNICATION FROM CAMEROON; CHINA; JORDAN; MACAO, CHINA; MYANMAR AND SEYCHELLES

The European Union thanks China for putting forward this proposal for a Ministerial Declaration and working with interested members on further improvements to the text.

The European Union has provided comments with a view to streamlining the text and ensuring synergy with the ongoing work of the TBT Committee.

The European Union is of the view that this declaration could be a positive outcome for MC13, reaffirming the importance of the work of the TBT to reduce non-tariff barriers to trade, so the European Union has decided to become a co-sponsor.

13. DRAFT MINISTERIAL DECISION ON PROMOTING AGRICULTURAL PRODUCTION AND TRADE IN NFIDCS AND LDCS - REQUEST FROM THE AFRICAN GROUP

The European Union would like to thank Nigeria and the African Group for their submission.

The paper proposes several flexibilities for LDCs and NFIDCs related to a food security crisis. We are reviewing this submission in detail.

Nevertheless, I would like to make some preliminary comments on some of the elements proposed.

Considering the ideas on a possible exemption for LDCs and NFIDCs on the use of their domestic support limits, this is an element that could be considered in the context of the reform of trade-distorting support disciplines, which is one of our key priorities in the negotiation.

In relation to the proposal on export restrictions, we are still analysing the ideas in the submission. But in principle, the European Union is in favour of any initiatives leading to the limitation of the use of export-restricting measures, which may in particular have a negative impact on importing Members.

The European Union naturally supports the reaffirmation of the rules agreed in Nairobi on the conditions under which international food aid is granted with a view to limiting trade distortions. The paper also points at the shortcomings of transparency on food aid. The European Union agrees that this is a problem that needs to be addressed.

It is important not to consider ideas that could result in backsliding on the provisions and disciplines agreed in Nairobi regarding export subsidies and measures with equivalent effect. The European Union remains open to engaging with the African group, LDC, and NFIDCs.

14. DRAFT MINISTERIAL DECISION ON SPS MEASURES - REQUEST FROM THE AFRICAN GROUP

The European Union is very surprised to see the request of the African group at this stage and would like to share its concerns both on process and content.

We understand that there might be legitimate concerns with SPS measures by different Members. But the text of the SPS Declaration work programme and the draft report to MC13 are the result of a long discussion between the Members. And we regret that the African group has decided to remain silent during the process and to address comments only at this final stage.

While we in the European Union have been welcoming different contributions, we would call upon all Members to cooperate with the chair and facilitator to streamline the process.

Given the difficult negotiations, the delicate balance, and the time and procedural constraints, the European Union is not in favour of re-opening the current version of the factual summary of the SPS Declaration work programme and the draft report for MC13.

16. THE CONTRIBUTION OF THE MULTILATERAL TRADING SYSTEM TO SUSTAINABLE AND RESILIENT AGRICULTURE AND FOOD SYSTEMS – STATEMENT BY THE CAIRNS GROUP (WT/GC/261)

The European Union thanks the Cairns Group for their submission, which, in our view, rightly underlines the need for urgent action in view of climate change. We are in a global emergency that goes beyond national borders. We have set ambitious targets in the Paris agreement and made a significant commitment last December in the Global Biodiversity Framework.

Last week in Dubai, 134 World Leaders signed up to the COP28 landmark agriculture, food, and climate action Declaration. It lists our common commitments and declares the intent to work collaboratively and expeditiously to pursue a series of commonly agreed-upon objectives.

The situation requires all of us to further step up our efforts, both internationally and through autonomous measures. The question is not if, but how we design and implement these measures. We need to develop them in a way that achieves environmental objectives and minimises impacts on trade. That can only be done through transparency and dialogue with trading partners.

The COP28 Declaration is our basis for action, and we must deliver on this common agreement. The WTO Membership needs to focus on its area of expertise. We concur with the Cairns Group that the multilateral trading system must contribute to sustainable and resilient food systems, with the WTO at its core and in accordance with its agreements.

The European Union stands ready to share our experience on designing sustainable and resilient agricultural policies based on non-trade distortive Green Box compliant measures.

17. EUROPEAN UNION REGULATION ON SUPPLY CHAINS FREE FROM DEFORESTATION AND FOREST DEGRADATION – COMMUNICATION FROM ARGENTINA, COLOMBIA, DOMINICAN REPUBLIC, GUATEMALA, HONDURAS, PANAMA, PARAGUAY, AND PERU (WT/GC/W/912)

. This is an important point for many members. It is also an important topic for the European Union, which is why we have engaged on the Deforestation Regulation at length in various committees), and we have organised several informal sessions and workshops.

We have all made the commitment, under the Sustainable Development Goals, to halt deforestation by 2020. Clearly, this has not been achieved. And that is why 143 producer and consumer countries including the European Union pledged to halt and reverse forest loss by 2030 as part of the Glasgow Leaders Declaration on Forests and Land Use. If we want to achieve this goal, we need to act. And with continued alarming rates of deforestation globally – we need to act now.

The Deforestation Regulation is part of our response.  The European Union contributes to deforestation by consuming a significant share of products associated with deforestation and forest degradation. We therefore have the responsibility to contribute to more sustainable value chains and foster more sustainable consumption, production, and trade.

But we also understand we cannot do it alone.

We are committed to implementing the Deforestation Regulation in a spirit of close partnership, transparency, and open dialogue. This is why we have closely engaged with all Members, when preparing the Regulation. And why we have intensified these efforts once the Regulation was adopted.

These exchanges are a two-way street: on the one hand, we are keen to help business and regulators understand the Regulation better; on the other, they are useful opportunities for us to better understand concerns, and feed our ongoing reflection on what further tools are necessary to facilitate its smooth implementation.

Going forward, we will continue our close engagement with all of you in the run-up to the Regulation’s entry into application in December 2024 and beyond. Via bilateral channels as well as deforestation-specific platforms such as the EU Multi-Stakeholder Platform on Protecting and Restoring the World’s Forests, or the Initiative on deforestation-free supply chains and the Sustainable Cocoa Initiative.

We will also continue the dialogue on this matter in the WTO. In January, January 9^th, I have invited, Ms. Florika Fink-Hooijer, Director-General of the European Commission in charge of the EU’s Deforestation Regulation for a dialogue with the WTO Ambassadors in Geneva, which I hope you will be able to attend.

We have also heard your concerns on the risk categorisation. This is why we have decided to take more time to finalise the assessment, so as to allow for constructive engagement and dialogue with trading partners in this regard.

The risk categorisation will take into consideration objective and internationally recognised data, as well as efforts undertaken to fight deforestation and forest degradation nationally and globally. Our intention is to prepare this assessment through extensive dialogue with interested trading partners.

European Union Delegations throughout the world will be reaching out to your respective ministries to invite you to feed the information into the risk assessment process. In addition, we will also seek your input on trade facilitating tools (for example, guidelines on implementation, repository of best practices on due diligence, or financial support).

We encourage you to share all the information that you may consider relevant, including on ongoing sustainability initiatives at national and/or regional level, as well as on emerging best practices.

We can only succeed in halting deforestation if we join forces. We look forward to continuing our cooperation and dialogue to meet our shared climate and biodiversity goals and to protect the world’s forests for the benefit of all.

18. INFORMATION ON INVESTMENT FACILITATION FOR DEVELOPMENT – REQUEST FROM CHILE AND THE REPUBLIC OF KOREA (JOB/GC/373)

The European Union welcomes the conclusion of the negotiations on an agreement on investment facilitation for development. This comes at a crucial moment, when the gap in foreign direct investment to address sustainable development goals has never been so broad. According to Unctad USD 4 trillion per year.

The implementation of the agreement could contribute to increase the flows of foreign direct investment towards developing countries by encouraging transparency, streamlining investment procedures and improving the relationship between investors and the administration. This is in line with what most developing countries are trying to do at domestic level.

The European Union stands ready to support the future implementation process, just as we are already supporting today several pilot projects by developing countries to carry out their needs assessment in relation to the agreement.

The European Union hopes that consensus can be found in order to allow this agreement to quickly deliver on the expected benefits.

19. ENHANCING MULTILATERAL DELIBERATIVE FUNCTION ON ENVIRONMENT-RELATED TRADE MEASURES AND FOSTERING SUSTAINABLE DEVELOPMENT - REQUEST FROM CHINA AND COLOMBIA

The EU would like to thank Colombia and India for their presentations.

The European Union proposals for WTO reform include as one of the objectives enhanced deliberation on global environmental challenges.

The European Union views the WTO, especially the CTE, as a valuable forum for actively engaging on trade-related environmental measures, both during the design phase and once the measures are in force.

Rather than negotiating structures for dialogue, we have walked the talk by engaging with members during the design of our policies and have continued this active involvement as we move towards implementation.

We do not consider prescriptive rules for engagement in the WTO on trade related climate measures necessary. Nor do we believe they would entice WTO Members to engage more than they have done; quite the opposite, indeed, they might discourage engagement.

When it comes to interpreting WTO law and environmental law and principles, the CTE does not have a mandate to interpret the WTO legal regime, even less so environmental ones. We must be very careful about what we wish for. No Member would like that bodies established under international environmental agreements start interpreting WTO law.

If we genuinely want to encourage or engage in deliberation and identify ways in which trade policy can contribute to addressing global environmental challenges, we encourage members to shift from ideological discussions and engage in practical action.

One such action could be to explore how we can facilitate trade, provide support, and offer technical assistance to enhance Developing Countries' abilities to export

20. REVIEW OF THE EXEMPTION PROVIDED UNDER PARAGRAPH 3 OF GATT 1994 (WT/L/1165, WT/L/1178)

The European Union supports this review process.

I must once again underline our strong concerns with this unjustified exemption. The European Union continues to view the Jones Act as a piece of legislation that restricts fair competition in the shipbuilding and shipping markets and no longer serves a legitimate purpose in today’s global economy. Even more, new implementing rules show an increasingly protectionist interpretation of the Jones Act, going even further beyond its original intention.

The prevailing situation has negative economic consequences for the European Union's and other countries shipbuilding, logistics, dredging, and energy industries. But the costs are also high for the United States, which is faced with higher costs for off-shore energy production, coastal protection from flooding, adapting to climate change, and haulage services due to the closure of the US market for foreign-built, serviced, and operated ships.

22. INTERNATIONAL TRADE CENTRE UNCTAD/WTO - REPORT OF THE JOINT ADVISORY GROUP ON ITS 57th SESSION (ITC/AG(LVII)/292)

The European Union welcomes the report just made. The ITC does tremendous work, which makes a difference on the ground. The European Union and European Union Member States are major donors and partners of the International Trade Centre. I would like to thank the ITC and all its partners for their support of work on MSMEs worldwide and women's economic empowerment. This includes least-developed and conflict-affected countries and vulnerable groups, as well as, as I said, women.