Goods Council Addresses Trade Concerns and Future
Work, Elects New Chair
At
a meeting of the Council for Trade in Goods (CTG) on 9-10 April, WTO members addressed
more than 30 trade concerns touching on a wide range of trade measures and economic
sectors, including recent tariff actions being discussed at the WTO for the first
time. Members also exchanged views on the CTG’s future work and elected Mr Gustavo
Nerio Lunazzi of Argentina as
CTG Chair for the upcoming work year.
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.
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.