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EU Statement at the General Council Meeting, 17 December 2024

Statement delivered by Ambassador João Aguiar Machado

10. Follow-Up to Outcomes of Ministerial Conferences: MC13 (Abu Dhabi); MC12 (Geneva, co-hosted by Kazakhstan); MC11 (Buenos Aires); MC10 (Nairobi) and MC9 (Bali) – Statement by the Chairperson

  • On the Nairobi Decision on export competition. The EU underlines the importance of respecting the Nairobi decision, which is even more relevant in the current food security crisis.
  • We, in particular, highlight the provisions related to circumvention of the export subsidies elimination which requires monitoring. The EU is ready to engage on works aimed at overcoming the existing transparency gaps when it comes to food aid.
  • The EU welcomes the advancement of the works on the Third Triennial Review of the Nairobi Decision on Export Competition, containing important streamlining and improvement of the notification obligations.
  • The recent approval of the report and the decision on export competition notification requirements and formats is a substantial achievement of the Membership, and the proof that the WTO can deliver on quite concrete elements facilitating transparency.

10.1 Work Programme on Electronic Commerce – Report by the Facilitator

  • The EU welcomes the positive trajectory of the discussions in the eCommerce Work Programme, under the leadership of the new Facilitator Ambassador Brown.
  • We appreciate the good work programme plan proposed by the Facilitator in terms of topics for exchanges among Members and inputs of other relevant stakeholders.
  • The EU looks forward to advancing our work next year and hope this work leads us to a stable solution allowing the continuation of the work programme and the moratorium in customs duties on electronic transmissions post the MC14.

11. Dispute Settlement Reform – Statement by the Chairperson

  • First of all, I would like to thank the Ambassador of Mauritius Ms Usha Canabady for her exceptional efforts.
  • I would also like to extend our thanks to the facilitators for their efforts.
  • Re-establishing a fully functioning dispute settlement system in the WTO remains a priority for the European Union. It is pivotal to preserve the multilateral rules-based trading system.
  • Finding a solution that guarantees the enforceability of rules is of the utmost importance and urgency. We need to stop the erosion of the rules: they provide the necessary stability and predictability to the system, which is fundamental for business and benefits our societies. They also contribute to stability in our broader, geopolitical relations.
  • We regret that, despite the substantial work done by Members, Dispute Settlement reform discussions did not deliver a fully functioning system “by 2024”. This was the objective set by Ministers at MC12 and reaffirmed at MC13. And we have failed to deliver on that objective.
  • The EU understands that several Members had concerns, including the United States. We and other Members have been engaged in intense discussions for more than two years. We have made a substantial and sincere effort to meaningfully reform the system.
  • These efforts have been commensurate with the importance that the Membership attaches to a fully functioning system.
  • As indicated in your report Chair, there is a substantial reform package in the making that fundamentally reforms the system, even if not all issues have been resolved by now.
  • This work reflects the attachment of the Membership to a binding and independent dispute settlement system that allows for appeal review and their willingness to re-design such system to address the concerns that were expressed by the United States.
  • The EU would like to stress that it remains committed to reforming the dispute settlement system so that it meets the interests of all Members and supports rules-based trade. We would invite you, Chair, to consult with Members next year to see how we follow-up on this given the political realities.
  • That said, it has now been 5 years that the system is not functioning fully. The more time passes without a solution, the more we undermine the rules underpinning the system and its credibility. 
  • Against this backdrop, the MPIA is ever more important as a stop-gap solution to preserve a fully functioning dispute settlement system among the willing Members. While we continue to hope to find a long-lasting solution, we invite other Members to join the MPIA in the meantime.

14. The Development Assistance Aspects of Cotton – Statement by the Director-General

  • First of all, we would like to thank the Director-General for her statement.
  • On development assistance to cotton, the EU (both the European Commission and Member States) has continued to engage at regional level and at national level in partner countries where cotton has been identified as a priority sector, especially in West Africa.
  • The EU will remain involved in the Director-General’s Consultative Framework Mechanism for Cotton as a platform for cooperation and information exchange.
  • Thank you.

15. Unleashing Potential: WTO Contribution to SDGs – Leading Efforts in Advancing Development-  Communication from Egypt (WT/GC/W/959)

  • The European Union thanks Egypt for its submission which we read with interest and which we are still consulting internally.
  • Indeed, the WTO’s work can contribute to the sustainable development goals (SDGs), with the fisheries subsidies negotiations being the best example of a direct contribution of the WTO if we really want to contribute to SDGs.
  • However, the 2030 Agenda for Sustainable Development – which includes 17 SDGs and 169 targets addressing issues such as poverty, education, health, climate action, and partnerships—provides a robust framework for reviewing the implementation of the SDGs. The Agenda outlines clear provisions (in particular Paragraphs 72, 74, and 77) to ensure accountability, transparency, and inclusivity in implementation of the SDG agenda. Paragraph 77, in particular, designates the High-Level Political Forum on Sustainable Development (HLPF) as the central platform for reviewing progress (which is also mentioned in Egypt’s paper). The EU, as other members, is contributing to that process of review to show how its policies, including trade policy, are contributing to achieving the SDGs.  
  • In view of this, we see no need to establish another group in the WTO that would duplicate efforts.  

18. Dialogue on Sustainable Agriculture in the Multilateral Trading System – Communication from Brazil (WT/GC/W/938)

  • The European Union thanks Brazil for its Communication on Sustainable Agriculture.
  • We welcome the suggestion to establish a dedicated dialogue on sustainable agriculture, to focus on how the multilateral trading system can better support agriculture and food systems towards sustainability and resilience. The EU has good experiences and reflections to share about that. We are therefore looking forward to a comprehensive and shared agenda for the upcoming retreat.
  • In EU’s view, repurposing trade distorting support, in line with the calls by the United Nations, represents a significant opportunity to help transform food systems, support climate action, and achieve the SDGs. Reducing the most distorting, environmentally, and socially harmful support, and redirecting it towards investments in public goods and services for agriculture, as well as decoupled support, is one way of advancing on this goal.
  • The EU considers it of utmost importance to talk about sustainable agriculture in the WTO since, the challenges we are dealing with are global. We are looking forward to fruitful exchanges in the Dialogue on sustainable agriculture. Topics should be inclusive, related to the transition to sustainable food systems, particularly in developing countries. The topic of sustainable productivity is an important issue to cover alongside the trade aspects of how the WTO can contribute to sustainable agriculture and protection and preservation of the environment.
  • The WTO can play a role here in terms of providing clear rules, transparency, and policy dialogues. The EU also advocates engagement with other international organisations where a lot of work is already invested.