3. Incorporation of the Investment Facilitation for Development Agreement into Annex 4 of the WTO Agreement – Draft Decision (WT/GC/W/927/Rev.2)

Concluding remarks by the EU 

I took careful note of the interventions by the three Members. I am a bit surprised that one of the interventions questions the developmental nature of the Agreement. A Member is entitled to consider that this Agreement does not suit its own development stage and decide not to join it, but it should not second guess the assessment of the 90 developing countries and LDC parties to the IFDA, of which several took the floor today to stress how important this Agreement is for their economic development. It is presumptuous and patronizing to put into question the legitimate position of the many developing countries that consider this Agreement as instrumental for their development. 

I would like to reiterate that 126 IFD Members parties firmly believe that their request fully observes the letter and spirit of the Marrakesh Agreement.

I will focus in more detail on two concerns expressed in the past.

The first concern is the possibility of negotiating and adding a NEW plurilateral agreement in the WTO. It has been stated that Article III.2 of the Marrakesh Agreement by referring to "multilateral trade relations", only envisages multilateral negotiations.

The term "multilateral trade relations" also encompasses plurilateral agreements amongst WTO Members. There is no provision in the Marrakesh Agreement precluding a group of Members from negotiating a "plurilateral" agreement.

Plurilateral agreements were envisioned from the inception of the WTO as integral components of the WTO framework. Article III.2 has to be read together with Article X.9 of the Marrakesh Agreement, which explicitly provides the legal basis for adding new plurilateral agreements involving a subset of Members to the WTO legal framework. Denying the possibility of a new plurilateral agreement would deprive Article X.9 of its purpose, rendering this WTO provision meaningless.

It is precisely through the operation of Article X.9 that WTO rulemaking remains safeguarded from any potential weakening arising from plurilateral agreements, as each incorporation of such agreements would necessarily require a distinct and separate decision taken 'exclusively by consensus'.

The discussions in today’s and previous General Council meetings show that consensus is at the core of the IFD Members' faith in the strength and resilience of this organization.

The second concern is whether 'investment' belongs to the WTO. IFD Member parties have repeatedly demonstrated the growing interlinkages and inseparable nexus between trade and investment. As evidenced by quantitative studies, the implementation of Investment Facilitation measures has a strong potential of leading to increased FDI flows, particularly to developing and least-developed Member countries, helping them to integrate their production into international markets and global value chains.

In addition, investment is by no means foreign to the WTO. Several WTO agreements already apply to and address investment measures – notably the Agreement on Trade-Related Investment Measures (TRIMs). The most obvious example, however, is the provision of services through the establishment of a commercial presence (so-called "mode 3") under the GATS, which is defined as "trade" but essentially involves investment.

The decision on incorporation is urgent. It was almost one year ago that the Ministerial event in Abu Dhabi marked the finalization of the Agreement; expectations are therefore high that we move forward with incorporation. Incorporation of the IFD Agreement is therefore necessary for IFD Members parties to start their domestic procedures for the Agreement to bear its pro-development benefits as soon as possible.

We remain fully committed to deepening the engagement with those Members who have expressed concerns, and we stand ready to provide any further clarifications necessary.

Finally, Mr. Chair, let me express our appreciation for your leadership and guidance, and we trust and count that your successor will continue to support these discussions. We remain committed to reporting to the Membership at the next General Council meeting on the progress we expect to achieve on our request by then.

4.  Incorporation of the Agreement on Electronic Commerce into Annex 4 of the WTO Agreement – Communication from the Members Parties to the Agreement on Electronic Commerce (WT/GC/W/955)

The European Union fully supports the e-commerce Agreement and its WTO incorporation as an Annex 4 agreement.

This agreement establishes a much overdue and much needed foundation for global digital trade. It will empower Members to grow their economies, foster cross-border trade, and bridge the digital divide.

The importance of this agreement goes far beyond digital trade rules. It is an essential step forward for global trade that proves that the multilateral trading system can meet the 21^st century challenges.

Once implemented, the e-commerce agreement will provide for the broad set of rules in digital trade, bringing concrete benefits for businesses as well as consumers.

In fact, the business community all around the world has shown overwhelming support for the agreement, publicly calling for its swift implementation by the participating Members. This is a clear demonstration of the economic value of the e-commerce agreement.

Besides the economic value, the agreement will also foster digital inclusiveness and help to bridge the digital divide. It will enable the integration and participation of developing economies in digital trade, including through technical assistance and capacity building efforts. Additionally, it will serve as a catalyst for new opportunities, particularly for those with limited access to global markets, including Micro, Small, and Medium-sized Enterprises (MSMEs), rural communities, women, and youth.

We encourage Members that have not joined the agreement to thoroughly assess its relevance and benefits and to consider joining.

And, to conclude, we urge all WTO Members to support the incorporation of the E-commerce Agreement in the WTO as an Annex 4 agreement.

5.  Report by the Chairperson of the Trade Negotiations Committee and Report by the Director-General

Thank you, Madam Chair, for your update and frank assessment.

The European Union greatly values the benefits that the multilateral trading system has generated for all partners during the past 30 years - or 70 years if we include the GATT period. World trade has flourished under predicable, transparent rules and low tariffs.

It is, however, clear that the trading system is under strain – and more recently – under attack. We are deeply concerned about the current instability created by certain announced trade measures and existing trade practices that stand in contradiction with the principles that have enabled an unprecedented growth in global production and trade and a rise in standards of living, lifting millions out of poverty.

We believe the recent US announcements about tariff measures on steel and aluminium and the proposed reciprocal trade policy are a step in the wrong direction.

For decades, the European Union has worked with trading partners like the US to reduce tariffs and other trade barriers worldwide, reinforcing this openness through binding commitments in the rules-based trading system—commitments that the US is now undermining.

The European Union believes the announced measures are both unjustified and economically counterproductive. By imposing tariffs, the US is taxing its own citizens, raising costs for business, stifling growth and fuelling inflation.

Tariffs are harmful not just for the trading partners directly involved but heighten economic uncertainty and have disruptive effects for many others and the global trading system overall.

But these announced tariff measures are unfortunately not the only source of serious strain for the multilateral trading system. We are also increasingly concerned about China’s policies and practices that lead to market distortions and overcapacity with negative spill-overs around the globe. The current WTO rulebook is unable to address these practices and spill-overs which fuels further frustrations and loss of confidence in the system.

This is why the European Union is a strong advocate for the WTO to address the interplay between trade and industrial policy. Taking this topic forward is more pressing than ever.

Simply formally upholding a commitment to WTO rules that have significant gaps as regards distortive practices is insufficient to stop the erosion of the rules-based system. It is vital to also align to the spirit of the WTO Agreements, starting with corrective actions domestically to address negative spill-overs on others.

The European Union remains committed to an open and predictable global trading system that benefits all partners. We will continue to engage in constructive dialogue and cooperation in the WTO on resolving the current trade tensions and reforming the organisation so it can better respond to modern challenges. But those that are primarily responsible for putting a strain on the WTO that risks bringing it to a breaking point must be prepared to act responsibly to help put the system back on track.

Finally, we concur with the Director-General on the need for members to work together to uphold the system that has benefited the membership and explore ways of making progress on pending files such as the blockages on agriculture, fisheries subsidies and plurilateral agreements.

9. Follow-up to the WTO Off-Site Retreat on Trade as a Tool for Development and Way Forward – Request from Barbados and South Africa

The European Union is grateful for the retreat and the takeaways document.

Given the late hour, the European Union subscribes to the statements made by our European cousins: the UK, Norway and Switzerland.

As regards the Global Trust Fund mentioned by Director-General Ngozi, we would be grateful if emerging economies could consider contributing.

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

The European Union thanks Brazil for its efforts, to propose a draft agenda for the retreat.

The European Union considers it of utmost importance to address sustainable agriculture in the WTO since the challenges we are dealing with are global.

For this reason, we believe it is indeed essential to focus on how the multilateral trading system can better support agriculture and food systems towards sustainability and resilience.

The European Union is looking forward to sharing its experiences and reflections during the retreat as well as in the next steps of the dialogue.

Turning now to the agenda for the retreat, we appreciate the consultations conducted by Brazil and yourself GC chair.

The European Union believes it is valuable to have the scene set by presentations by recognized international organisations, in particular by those which have done extensive work on sustainable agriculture. It is our view that such presentations could cover the state of play in terms of agriculture and sustainability, both in terms of impacts of agriculture and food systems on the environment, as well as the threats emerging from a degraded environment for agriculture and food security. This should be followed by a discussion on the specific role of agricultural trade on the environment, both the positive contribution, as well as the potential adverse impacts.

On the topics to be addressed we find that the proposed themes for the breakout sessions as well as the guidance questions to be balanced and prone conduct to useful exchanges.

Last but not least, if it is to make out the most of this initiative, we would welcome to have milestones for this dialogue. Therefore, we would encourage the entire membership to further reflect before-, during and after the retreat, on how the future workstreams could take shape, so there is a clear follow-up to the discussions taking place during the retreat.

The European Union is looking forward to fruitful, participative and forward-looking exchanges in this Dialogue on sustainable agriculture as well as in the upcoming retreat.

12. REVIEW OF THE EXEMPTION PROVIDED UNDER PARAGRAPH 3 OF GATT 1994 (WT/L/1214)

Chairman, as we have stated in the past years, the European Union supports this review process.

As we have indicated in many of the previous review of this item, we have concerns with this exemption.

The prevailing situation has negative economic consequences for the European Union. But the costs are also high for the US, which is faced with higher costs for coastal protection from flooding, adapting to climate change, and haulage services due to the closure of the US market for foreign built, serviced or operated ships. 

We sincerely hope that the 2025 review will be consequential.

14. WTO at 30 – Statement by the Director-General

The European Union fully supports this timely and important reflection process on making the WTO work better for the future.

The 30th anniversary of the WTO is indeed a good moment to take stock of the multilateral trading system’s past successes but more importantly look at how we can make the system fit for the current geopolitical context.

We welcome the idea of anchoring this reflection process in an independent wise persons’ group producing a report and recommendations. Obviously, the responsibility rest with Members but it is always useful to have views and input from a group of eminent persons.

We also welcome the leaders’ discussion to provide the necessary high-level political support and strategic guidance in the lead-up to MC14.

You can count on our contribution in this important exercise.