Trade concerns
The CTG reviewed 35 specific trade concerns (STCs), four of which were raised at the Council for the first time. The new trade concerns were (in alphabetical order):
- European Union – Proposal for a Regulation on Fluorinated Greenhouse Gases (F-gas), Amending Directive
- India – Measures That May Have Unintended Results Equivalent to Quantitative Restrictions
- Philippines – Export Restrictions on Minerals in Their Raw Form
- United States – Reciprocal Tariffs and Other Tariff Measures
On the first item, the United States and Japan raised concerns regarding the development and implementation of the EU regulation in question.
On the second item, Thailand expressed concern regarding delays in the issuance of standard marks and import licenses in India for certain products, including wood-based boards and viscosity fibres.
On the third item, Japan and the United Kingdom raised concerns regarding a bill in the Senate of the Philippines which they said would impose export restrictions on raw minerals.
On the fourth item, China raised concerns regarding the recent tariff measures announced by the United States. China said that the tariffs ran counter to WTO rules and undermined the multilateral trading system, and it called upon all WTO members to stand together in safeguarding the rules-based system. Twenty members took the floor to comment. Many expressed concerns about the negative economic impact of the tariffs and their compatibility with WTO rules. Many also stressed the importance of resolving trade disputes through dialogue and cooperation within the WTO framework.
The United States delivered a separate statement on its tariff duties announcements of 2 and 9 April under “other business”. It said that, on 2 April, US President Donald Trump had declared a national emergency under domestic law due to the extraordinary threat to US national and economic security arising from conditions reflected in large and persistent annual US goods trade deficits. The United States said it was not altering or abrogating its WTO tariff bindings or commitments, but rather was taking action it considered necessary for the protection of its essential security interests, and was maintaining the measure pursuant to the essential security exception in the WTO Agreement.
China replied that it regretted that the US measures had introduced uncertainty into the global economy; there were no winners in the trade war, China said, adding that it was essential to resolve this issue within a cooperative framework. No other member took the floor.
Trade concerns previously raised in the CTG have covered a wide range of measures relating to trade in goods across the WTO membership, including non-tariff barriers, environmental policies, import taxes, import/export restrictions, national security, halal certification, subsidy schemes, export controls, sanitary and phytosanitary (SPS) measures, discriminatory domestic taxes, administrative procedures, and trade-disruptive and -restrictive measures.
They have also encompassed a wide range of sectors, including agriculture, semi-conductors and semi-conductor-manufacturing equipment, and food products, as well as specific products, such as critical minerals, electric vehicles, electric batteries, liquors, air conditioners, apples and pears, cheese, pulses, cosmetics and tyres.
The full agenda of the meeting is available here.
Appointment of officers to the subsidiary bodies of the Council for Trade in Goods
Regarding the election of chairs for the CTG’s 14 subsidiary bodies, the outgoing CTG Chair, Ambassador Clare Kelly of New Zealand, reported on the process and informed members that consultations would continue with a view to finding consensus. Once this was reached, the new Chair would reconvene the meeting to address this agenda item only.
Future work of the Goods Council
The Chair reported on the 25 February informal dedicated session on managing trade concern discussions, at which members further discussed ideas and proposals that had been put forward by delegations, as well as on the second informal session on digital tools used in the CTG and its subsidiary bodies, which was held on 7 April.
The CTG then considered a draft Decision on the recording of the resolution of trade concerns. The Decision would allow for the recording of positive resolutions, based on the existing practices of the Committees on Sanitary and Phytosanitary Measures (SPS) and Technical Barriers to Trade (TBT). Discussions will continue.
Secretariat report on status of notifications
The WTO Secretariat presented a new report on the status of regular/periodic and one-time only notifications in the goods area by members to the CTG. Transparency is a fundamental WTO principle, requiring members to notify various elements of their trade-related measures and policies to the WTO.
The report reveals an overall submission rate of 77.2 per cent for covered notification requirements, with a higher compliance rate of 82.3 per cent for one-time notifications, and a lower rate of 68.9 per cent for regular/periodic notifications. Detailed submission rates for least-developed country (LDC) members were also provided.
Several members took the floor to thank the Secretariat for the report and the analysis contained therein.
Other issues
The United States raised what it considered to be systemic concerns that the WTO Secretariat was not properly informing and consulting with members prior to undertaking certain activities that are relevant to members’ work in the CTG and its subsidiary bodies. The United States called for a collaborative effort among members to create formal guidance and ensure that the Secretariat remained member-driven, including seeking approval, where appropriate, before engaging in such activities.
Nineteen members took the floor to comment. In the exchanges, many members reflected the value that they placed on the technical work of the Secretariat, with a shared concern for improving its transparency and communication with WTO members, while balancing the need for efficient Secretariat operations. Several members expressed concerns about any requirement that the Secretariat obtain member approval before undertaking knowledge activities.
Replying on behalf of the WTO Secretariat, Deputy Director-General Angela Ellard highlighted the launch of a comprehensive transparency portal for members and ongoing efforts to keep them informed about Secretariat activities and to seek their views. The Secretariat remains committed to serving all members impartially and transparently, while continuously improving its services, based on member feedback, DDG Ellard added.
Election of the Chair
At the conclusion of the meeting, members elected Mr. Gustavo Nerio Lunazzi of Argentina as Chair of the Goods Council for the upcoming work year.
The outgoing Chair, Ambassador Clare Kelly of New Zealand, noted that the Goods Council meeting had, as usual, taken place in room W of the WTO, the same room in which General Agreement on Tariffs and Trade (GATT) negotiators forged the multilateral trading system that members know today, and in which the first important GATT meetings took place. Whenever delegates walk into this room, she said, they should remember that they are walking through history, and have a responsibility not only to preserve, but also to enhance and adapt the legacy of our predecessors to new challenges.
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