WTO Goods Council Debates Tariff Rules, Trade
Concerns and Multilateral Trade Reforms
Members emphasized the growing strain on
the rules-based trading system amid escalating trade tensions and compliance challenges
at a meeting of the WTO's Goods Council on 20-21 May chaired by its recently elected
Chairperson, Ambassador Erwin Bollinger (Switzerland). Delegations in attendance
addressed 38 specific trade concerns raised by members, of which nine were raised
for the first time.
Key Highlights from the Council for Trade
in Goods (CTG) Meeting (20–21 May 2026)
·
The WTO’s Council for Trade in Goods met under the chairmanship of Erwin
Bollinger and discussed growing pressures on the global rules-based trading system.
·
Members raised concerns over:
o escalating trade tensions,
o rising protectionism,
o unilateral trade measures,
o industrial subsidies,
o global overcapacity,
o and weakening compliance with WTO transparency
obligations.
China Pushes Discussion on GATT Article
XXVIII
What China Said
·
China highlighted increasing use of GATT Article XXVIII, which permits
WTO members to modify or withdraw tariff concessions through negotiations.
·
Key figures presented by China:
o 58 Article XXVIII negotiations initiated
since WTO formation
o 29 concluded
o 18 ongoing
·
China argued that Article XXVIII can:
o prevent arbitrary unilateral tariff changes,
o act as a “safety valve” for trade disputes,
o and help resolve frictions within WTO rules.
·
China proposed technical discussions to clarify procedures and improve understanding,
especially for developing countries.
Reactions from Members
·
Some members supported clarifying rules.
·
Others warned the mechanism could legitimize protectionist policies inconsistent
with WTO commitments.
·
One member linked growing use of Article XXVIII to pressures caused by global
overcapacity and “non-market policies”.
·
Another member said additional technical discussions were unnecessary.
38 Trade Concerns Reviewed
Trade Concerns Overview
·
Members reviewed 38 specific trade concerns (STCs).
·
Nine concerns were raised for the first time.
·
WTO Secretariat reported:
o 108 trade concerns have been resolved or
partially resolved,
o representing nearly half of all concerns
raised.
New Trade Concerns Raised
Countries and Measures Under Scrutiny
·
Brazil
o Anti-dumping investigation and restrictive
measures on imported milk powder
·
Colombia
o Decree No. 0170/2026 and related measures
affecting Ecuador
·
Ecuador
o Customs service fee imposed on goods entering
Colombia
·
European Union
o Proposed classification of tea tree oil
as a Category 1B reproductive toxin
o Proposed Cybersecurity Act
o Proposed Industrial Accelerator Act
·
United Kingdom
o Steel trade restrictions
o AMS (Aggregate Measurement of Support) apportionment
with the EU
·
United States
o Section 301 investigations and tariffs
Transparency and Notification Compliance
Debated
WTO Notification Performance
·
WTO notification compliance improved modestly:
o from 77.6% in 2024
o to 78.7% by end-2025.
·
Members agreed to continue discussions on improving:
o notification monitoring,
o Secretariat reports,
o and the WTO Notification Portal.
US Raises Compliance Concerns
The United States criticized:
·
unanswered written questions in WTO committees,
·
and long-standing failures by some members to submit mandatory notifications.
The US emphasized:
·
many missing submissions are simple “nil notifications”,
·
transparency is essential for accountability.
One member responded that the EU, US and
others have also failed to reply to certain questions.
Debate on the Future of the Rules-Based
Trading System
Countries Leading the Discussion
·
Australia, New Zealand, Norway and Switzerland jointly reaffirmed support
for the WTO-centered multilateral trading system.
Main Themes Raised
Members highlighted:
·
growing uncertainty in global trade,
·
fragmentation of supply chains,
·
weakening trust in multilateral rules,
·
and increased use of unilateral trade actions.
Diverging Views
·
Some members called for preserving and reforming the existing system.
·
One member advocated a broader “reset” involving:
o higher tariff averages,
o opening closed markets,
o boosting domestic consumption,
o and addressing industrial overcapacity.
Fisheries Subsidies Committee Rules Approved
·
The CTG formally adopted rules of procedure for the new WTO Committee on
Fisheries Subsidies.
·
The committee had held its first meeting on 1 May 2026.
Digital Tools and WTO Modernization
Informal CTG Meetings
·
WTO Secretariat presented updates on digital tools supporting the CTG and
its subsidiary bodies.
·
Members also reviewed reports on notification performance and transparency.
Delay in Appointment of CTG Subsidiary Chairs
·
Members could not finalize appointments for chairpersons of 15 CTG subsidiary
bodies.
·
Consultations will continue under Chair Ambassador Bollinger.
Bodies affected include committees dealing
with:
·
agriculture,
·
market access,
·
trade remedies,
·
TBT,
·
SPS,
·
and trade facilitation.
Next WTO Goods Council Meeting
·
The next formal CTG meeting is scheduled for:
o 16–17 November 2026.
[ABS News Service/27.05.2026]
China made a statement regarding
its 18 May communication concerning the use of General
Agreement on Tariffs and Trade (GATT) Article XXVIII, which allows WTO members to
modify or withdraw tariff and other concessions under specific procedures. China noted that Article XXVIII had been increasingly
invoked, with 58 negotiations initiated since the WTO's creation, 29 having been
concluded and 18 ongoing.[1] Historically, it had been used for purposes such
as adjusting tariffs, forming customs unions, and making limited changes to commitments,
often resolved through negotiation.
China noted that if used properly,
Article XXVIII can help to prevent arbitrary and unilateral changes to tariff commitments
and act as a "safety valve" to ease members' trade frictions via the WTO
framework. Its proposal to hold technical discussions within the WTO to clarify
the rules and procedures would help current and future participating members, especially
developing members, to develop a common understanding on the application of these
procedures and engage in these negotiations more effectively.
Nine members took the floor to
comment. Some expressed concerns with Article
XXVIII negotiations, which in their view were being used to legitimize protectionist
measures that would otherwise be contrary to WTO rules, while others expressed interest
in clarifying the rules. One member recalled
that this provision allowed members to modify their tariff concessions through negotiation,
and that members were being compelled to utilize Article XXVIII to relieve pressures
arising from overcapacity caused by other members' non-market policies and practices.
One member was of the view that such technical discussions were not necessary.
The Council for Trade in Goods
(CTG) reviewed 38 specific trade concerns (STCs), nine of which were raised at the
Council for the first time, including one that was raised under other business.
The WTO Secretariat presented a report stating that 108 trade concerns had been reported by members as resolved or partially resolved, which represent approximately
half of the relevant trade concerns. Detailed information can be found in the WTO's
Trade Concerns Database, the Secretariat added.
The new trade concerns were (in
alphabetical order):
·
Brazil - Anti-dumping Investigation and Trade-Restrictive Measures
Concerning Imported Milk Powder
·
Colombia - Decree No. 0170/2026 and the Amending Decree: Trade-Restrictive
Measures Adopted by Colombia Against Ecuador, Contrary to its Commitments under
the WTO Agreements
·
Ecuador - Customs Service Fee for Customs Check of Goods Entering Colombia
·
European Union - Proposed Re-Classification of Tea Tree Oil as a Category
1B Reproductive Toxin by the European Chemicals Agency Committee for Risk Assessment
(RAC)
·
European Union - Proposed Cybersecurity Act
·
European Union - Proposed Industrial Accelerator Act
·
United Kingdom - Trade Restrictive Measures on Steel Products
·
United Kingdom - Final Bound Total AMS Apportionment between the European
Union and the United Kingdom
·
United States - Section 301 Investigations and Tariffs
The CTG considered two reports
by the Secretariat concerning notifications, including its annual report on the status of notifications, and a second report updating
calculations on notification submission rates in the goods area. The latter showed an improvement
of 1.1% in meeting notification requirements, increasing from 77.6% in 2024 to 78.7%
by the end of 2025. Following discussions at an informal meeting, members agreed
to meet again to discuss possible improvements to these reports and the Notification Portal with a view to enhancing the
monitoring of notifications.
The United States introduced
two agenda items highlighting transparency and compliance concerns. First, it noted
that many written questions in WTO committees remain unanswered for years, stressing
that the issue is the absence of responses rather than their quality, and that replies
are essential for transparency and accountability. One member pointed out that several
members, including the EU, US and others, had also failed to respond. Second, the
US highlighted that some members have not submitted required notifications for decades,
despite many being simple "nil notifications" confirming the absence of
relevant measures. It welcomed recent progress by Botswana and Côte d'Ivoire in
this area and urged others to follow suit.
Australia, New Zealand, Norway
and Switzerland introduced a discussion on supporting the rules-based multilateral
trading system in a changing global economy. They reaffirmed their commitment to
the WTO as the cornerstone of global trade governance, emphasizing that its rules
provide predictability, stability and fairness for businesses and economies. Thirteen delegations then took the floor to comment.
Most delegations that spoke reaffirmed
support for the WTO or the multilateral trading system, though views differed on
how to adapt it to current challenges. Many members underlined that the system faces
serious pressures, including the rise of unilateral trade measures, protectionism,
industrial subsidies, overcapacity and structural imbalances in the global economy.
Several members warned that such trends are increasing uncertainty, fragmenting
trade and undermining trust in multilateral trade rules. One member emphasized the need to rethink and
rebalance the international trading system; in its view, this new system would require
a long-term reset to higher average tariff rates, while for others it would require
opening long-closed markets, shifting to greater domestic consumption and addressing
overcapacity.
The CTG formally approved the
rules of procedure of the new Committee on Fisheries
Subsidies (CFS), which were adopted at the committee's first meeting on 1 May.
The Chair of the CTG, Ambassador
Erwin Bollinger (Switzerland), reported on the outcome of two informal meetings
of the CTG on 19 May. At the first of these
meetings, the Third Informal Session on Digital Tools Used in the CTG and its Subsidiary
Bodies, the WTO Secretariat provided an overview of the WTO digital tools relevant
to the work of the CTG and its subsidiary bodies.
At the second meeting, the Chair
said members discussed the two Secretariat reports regarding the status of notifications
and statistics on notification submission rates as of 31 December 2025.
Ambassador Bollinger reported
that members were not yet in a position to put the slate of names forward for adoption
and that he would continue consultations with members with a view to finding a solution. The exercise involves the new Chairpersons of the 15 subsidiary bodies
reporting to the CTG, including those on agriculture, market access, trade remedies,
technical barriers to trade (TBT), sanitary and phytosanitary measures (SPS) and
trade facilitation. The process to determine the next Chairperson of the CFS will
be incorporated next year.
The next formal meeting of the
Council for Trade in Goods will take place on 16-17 November 2026.