EU Statement at the General Council, 22-23 July 2025
4. Incorporation of the Investment Facilitation for Development Agreement into Annex 4 of the WTO Agreement – Draft Decision (WT/GC/W/927/Rev.2)
Thank you, Chair, and thank you to Korea for the introductory statement.
First, let me welcome our close neighbour Liechtenstein to the IFD Agreement.
Chair, I would like to underscore the collective aspiration of 127 WTO Members for the integration of the Agreement into Annex 4 of the WTO Agreement. This Agreement, supported by the overwhelming majority comprising many developing and least-developed countries, has a strong potential to foster increased foreign direct investment flows to bolster economic growth, integration into the global value chains and diversifying exports markets.
Anchoring this Agreement within the WTO demonstrates the dedication of a large number of WTO members to strengthening the global trading system that finds itself at a critical juncture marked by uncertainty and evolving challenges.
Let us remind ourselves that the Marrakesh Agreement envisions plurilateral agreements as integral to our framework, with Article X.9 providing the legal foundation.
Blocking the integration of an Agreement that does not undermine anybody’s interests and rights, but even benefits also the non-participants, will endanger the very system we are striving to uphold.
Incorporating this Agreement is not merely procedural, it is imperative. As articulated in previous General Council meetings, this step is urgent for delivering the Agreement’s developmental benefits promptly.
As reminded by the Co-Coordinator just now and DG at the last TNC meeting, attracting investment is more important than ever as the investment inflows into the emerging markets remain subdued and development aid is becoming non-existent. Investment and trade are the engines to propel economies forward and IFDA could be a vital tool to support attracting investment for developing countries and LDCs.
Our journey towards finding consensus has been marked by continuous dialogue and outreach with members not in a position to support the decision yet on the incorporation until now as well with new interested members to join the Agreement.
As Co-Facilitators we continue to stand ready to engage and clarify so that together we may advance toward a resolution that honours the developmental aspirations of a significant majority of the WTO membership, while safeguarding the integrity of our global trading system.
6. 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
6.1 WTO reform – report by facilitator
I would like to thank the Facilitator, Ambassador Ølberg, for his report on the two rounds of consultations held so far and all his efforts on this challenging and critical process for the organisation.
We agree with the Facilitator that a behavioural change is needed if we are to tackle this existential crisis the organisation is facing and deliver on WTO reform.
The European Union fully supports the proposed three tracks and structure. It is clear that improving governance and decision-making is a prerequisite for making the negotiation function more effective.
We also support more flexibility in incorporating open plurilaterals into the WTO rulebook. The WTO will only remain relevant as a negotiating forum if it maintains sufficient flexibility to address and establish new rules pertinent to modern trade.
Under the second track, we see tackling non-market practices and policies as a further priority. This involves addressing level playing field issues, with improvements in transparency and disciplines for tackling subsidies and state-owned enterprises (SOEs).
Regarding the third track, while it relates to current issues, there are way we can pursue discussions in the WTO on these but unless we fix the first two tracks first, progress will be difficult to achieve.
I would also like to address some issues raised today. Dispute settlement is an integral part of this process. It was discussed in detail during the past two years, and when we resume technical discussions, it will be included in the reform. Dispute settlement is part of the reform discussion, but we can discuss how to tackle it in detail and when.
Secondly, some have remarked that this is a member-driven reform. However, a member-driven reform requires a structured process, and having a facilitator to organize this process is necessary. Members are already free to make submissions at any time.
Finally, we are in a highly challenging situation. To facilitate a genuine and productive discussion, everything should be open for discussion, there should be no “non-negotiable” issues as some have claimed. Otherwise, we are not fully addressing the problems at hand.
6.2 Work Programme on Electronic Commerce – Report by the Facilitator
The European Union welcomes the discussions in the E-commerce Work Programme under the leadership of Ambassador Richard Brown from Jamaica, including the recent stocktaking meeting in June on the way forward towards MC14.
We see the Work Programme as an important contribution to achieving an inclusive, predictable and rules-based international digital trading environment.
Members concur on the need to deliver concrete outputs and recommendations to Ministers at the next Ministerial Conference, as mandated by the MC13 decision.
For the European Union, agreeing by MC14 on a stable solution for the work programme and moratorium on custom duties for electronic transmissions remains a priority. In this context, we welcome the discussions on the impact of the moratorium in May, with input both from the private sector and international organisations. And we appreciate the growing support for a permanent moratorium in the WTO.
We look forward to taking forward discussions with the Facilitator and Members on the concrete outcomes for MC14 and beyond.
9. Respecting the Rules-Based Multilateral Trading System – Request from Brazil
The WTO is the global organisation with the bodies and mechanisms in place to address tariff measures by members and their impacts. We cannot shy away from our collective responsibility following the turmoil created by the US tariff measures and should continue the process of dialogue on this most pressing issue for international trade.
All WTO members are severely affected by the measures and the enormous uncertainty they have created in the system. Our citizens and companies are facing rising economic costs across the globe, reinforcing the fragmentation of global trade.
The emerging data clearly demonstrates how vital the predictability and stability that the rules-based multilateral trading system provides is for the global economy.
While the tariff situation presents an immediate threat to trade flows and the trading system, the European Union also acknowledges the need for a parallel conversation about the root causes that have led to the current tensions, and what the WTO can do to address them. The now ongoing process under Ambassador Ølberg offers a real opportunity for an open dialogue about that.
Reforming the WTO is about, first, making an honest diagnosis of the problems that haunt us and that the organisation is not addressing effectively; and, second, offering workable ways and solutions so that the WTO can continue to provide the foundation for rules-based trade globally.
We all want fairness, transparency and predictability for global trade. And this is what the WTO, a reformed WTO, must be able to deliver. A more flexible, agile and resilient organisation with an updated rulebook capable of addressing unfair practices and their spill-overs that have fuelled frustrations and loss of confidence in the system.
12. Member Conversations on Current Economic Issues – Request from Canada
Trade and industrial policy has become a key challenge for the WTO. This issue is major a source of tensions in the international trading system currently.
The informal deliberations sessions have been ably coordinated by Canada. The conversations are an essential step in building a common awareness and deeper understanding of this key issue among WTO Members.
Informal deliberations have proven to be a suitable working method for this first stage of work. Conversations have been open and constructive. The group of co-hosts is getting larger at every session. Currently 16 Members have co-hosted sessions, including both developing and developed Members, big and small. This shows the relevance of the topic to WTO Membership.
The deliberations should fully address the development dimension. This is ensured by the active role of developing countries as co-hosts, and the choice of topics and speakers. Fair competition and limitation of spill-overs from industrial policies are crucial preconditions for reaching the industrialisation objectives developing countries.
The European Union was happy to co-host a session on subsidies transparency with Kenya and Japan. Our take-away from that session is that a functioning transparency regime is a precondition for effective implementation of rules, and that there are significant shortcomings in the current transparency arrangements.
In September, Mexico and the European Union will co-host a session on financing industrial policies. It will highlight the role of banks as providers of financial resources to industrialisation objectives.
Overall, the deliberations will be helping Members to identify gaps in the current WTO rulebook. As a part of WTO Reform, we will need to fill the identified gaps through rule-making in due course.
13. Follow-up to the WTO Retreat on Sustainable Agriculture in the Multilateral Trading System – Request from Brazil
The WTO retreat on sustainable agriculture has showed that this topic is a global necessity as we all strive to build resilient agri-food systems, in harmony with our planet and its resource constraints.
As members of the WTO, we have a unique platform to build consensus, share best practices, and establish standards that promote sustainability. But we cannot do it alone, thus the relationship with other international organizations should be strengthened and factored in on our future deliberations.
While WTO is already addressing important sustainability-related issues in various committees and bodies, we do see a need to have a better overview of the various work streams. In this respect, we salute already the session on sustainable agriculture, in the framework of the Committee on Trade and Environment next November.
Chairperson, allow me to make a point which I consider important: sustainable agriculture is crucial for the WTO as it intersects with key areas of global concern: food security, environmental sustainability, economic resilience, and social equity. Achieving this effectively necessitates the active participation of the entire membership. It requires intentional collaboration, open dialogue, and shared commitment to ensuring that the transition to sustainability benefits everyone, regardless of their circumstances.
We encourage therefore the entire membership to take the dialogue forward, in the hope that we could advance both on agricultural negotiations and deliver on sustainable food systems.