EU Statement at the WTO Formal Trade Negotiating Committee/Informal Heads of Delegations Meeting, 28 February 2023

Statement delivered by Ambassador João Aguiar Machado

Let me start by congratulating H.E. Ambassador Acarsoy and Ambassador Gunnarsson on their appointments. With just under a year to MC13 in Abu Dhabi, the European Union is looking forward to intensifying work across the board in order to make good progress towards a substantive package for MC13. We see a number of areas where concrete and substantive results could be reached:

First, activating an improved and fully functioning dispute settlement by 2024 through meaningful, multilaterally agreed reforms remains the EU’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. Time is pressing, and 2024 is fast approaching. With this in mind, the European Union is keen to see reform discussions accelerating, and focusing now on identifying solutions for a limited set of issues that require improvements. This should pave the way for text-based negotiations in good time before MC13. 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.

Second, fisheries subsidies. The European Union welcomes the plan of work set out by the Chair and we see MC13 as the target date for the two main work strands:

  • First, is the entry into force and implementation of the phase 1 agreement. The European Union is well advanced on its internal ratification procedures. And we have also committed to support the Fisheries Subsidies Funding Mechanism at 1 million euro.
  • The other strand is the phase 2 negotiations on the outstanding issues. I believe it is possible to conclude by MC13. I call on all Members to engage constructively in these negotiations.

Third, development is a key issue that should be mainstreamed across the whole WTO reform agenda. In our view, the priority for MC13 should be a development package that includes addressing LDC concerns notably in relation to their smooth transition out of the LDC category. The European Union will continue to listen to the priorities of developing countries and stands ready to consider how to address their underlying concerns without changing the agreements.

We need to start substantive deliberation on the e-commerce Work Programme with a particular focus on the development dimension. This is an important multilateral track of work but for it to be meaningful and to deliver we must also prevent the creation of potential new obstacles to the digital transition across the globe. Termination of the moratorium would seriously undermine the WTO’s relevance for the digital economy. We very much hope that we can work on both a reinforced multilateral Work Programme and the extension of the moratorium.

Fourth on agriculture, the European Union remains fully committed to continue the work on agricultural reform. We support the need for a new approach. Members should integrate the issues of food security, environment, climate, poverty and sustainable production into the negotiations on reforming trade­distorting policies. The European Union suggests start working on improving transparency in agriculture across all pillars, notably in areas linked to food security such as export restrictions and international food aid.

The European Union also underlines the importance of work on the implementation of the work programme under the MC12 Declaration on Food Insecurity and will remain constructively engaged to deliver concrete outcomes that contribute to overcoming the challenges related to the ongoing food insecurity situation.

Fifth, we stress the importance of making good progress in the negotiations on the open plurilateral 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. And the European Union also expects the outcome of Services Domestic Regulation to enter into force before that.

In line with its approach to a comprehensive response to the COVID-19 pandemic, the European Union supports the continuation of the discussion on the extension of the TRIPS decision to COVID-19 therapeutics and diagnostics and we will continue to engage with all Members.

Let me finish by mentioning briefly the European Union’s latest contribution to the process of WTO reform. The success of MC 13, in our view, will be measured by how much more effective we can make the WTO. We have proposed to develop the deliberative capacity of the WTO as a key component of the reform process.

The European Union has circulated in this sense a submission just last week on “Reinforcing the Deliberative Function of the WTO to Respond to Global Trade Policy Challenges”. We are looking forward to presenting it at the General Council next week and to engaging with the Membership on how best to take forward these ideas.