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EU Statement at the General Council Meeting, 06-07 October 2025

06.10.2025
Geneva
EU mission to the WTO in Geneva - Press and information team

Statement Delivered by Ambassador João Aguiar Machado

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

Thank you, Chair.

  • 590 days have passed since the Joint Ministerial Declaration on IFD at MC13.

  • 442 days have passed since the request for legal incorporation of the IFD Agreement was first tabled for decision at the General Council.

  • Today, 127 Members are asking the question: how many more days shall pass until the IFD Agreement finally sees the light of day?

  • Attracting investment is more important than ever as FDI flows have been constantly declining in the past years. The outlook for this year remains negative. It is particularly challenging for emerging markets and developing economies as weak FDI flows are threatening their development trajectories.

  • We respect the decision of those Members that chose not to join the IFD Agreement for reasons they consider to be in their national interest. But it is less understandable and legitimate to block the vast majority of Members from benefiting from an Agreement that does not undermine anybody’s interests and rights, but even benefits also the non-participants.

  • I invite those Members to consider the voices of 90 developing countries, all expressing the pivotal role of this Agreement in their economic progress. Their sovereign assessments of their own development needs must be respected and supported, and shall not be dismissed.

  • [Studies show that the IFD Agreement has the potential to generate substantial welfare gains estimated between USD 295 billion and USD 1,041 billion globally with most of those gains accruing to low- and middle-income countries. The time to act is now.]

  • Let us remind ourselves that the Marrakesh Agreement envisions plurilateral agreements as integral to our framework, with Article X.9 providing the legal foundation. Denying the possibility of new plurilateral agreement would deprive Article X.9 of its purpose, rendering this WTO provision meaningless.

  • Finding a solution on this matter will reinforce the integrity of the global trading system, showing the WTO’s ability to achieve tangible development outcomes for all Members and demonstrate our organization’s continued relevance and resilience.

  • In this spirit, let me highlight the encouraging exchanges with other non-members in our “capital-to-capital” outreach. Several members are finalizing their assessment of the IFD Agreement.

  • [As Co-Facilitators] we remain fully committed to continuing the dialogue with those Members who have expressed concerns and we stand ready to engage and clarify so that together we can pave the way for a prompt and effective resolution in integrating this Agreement into the WTO framework.

  • Thank you.

4.1 WTO reform – report by facilitator

  • I would like to thank the Facilitator, Ambassador Olberg, for his report on the plenary and consultations held so far and all his efforts on this challenging and vital process for the organisation. 

  • I will not repeat the EU statement from the plenary session on WTO reform but let me make just a few brief remarks on the process going forward. 

  • While we see a stronger sense of urgency and momentum building up on WTO reform since the summer break, we still see the need for a shift in mindset and a spirit of compromise to allow us to reach outcomes at MC14.

  • We agree with the Facilitator’s plan to start with track 1 on governance reform and address how the organisation can reach decisions and how to inject more flexibility into system. The EU will feed into the reflections on this topic. 

  • We would also advocate for track 2 to start very soon to address other critical aspects of fairness such as the changed global trade landscape and the need to level the playing field. 

  • Chair, let me conclude by underscoring that the EU plans to play a very active role in this process in support of the Facilitator. In parallel, we would encourage members to work in different configurations in support of the process.

4.2 Work Programme on Electronic Commerce – Report by the Facilitator

  • The EU welcomes the discussions in the E-commerce Work Programme under the leadership of Ambassador Brown of Jamaica

  • We see the Work Programme and the moratorium on customs duties on electronic transmissions as an important contribution to achieving an inclusive, predictable and rules-based international digital trading environment.

  • Members of the Work Programme concur on the need to deliver concrete outputs and recommendations to Ministers at the next MC, as mandated by the MC13 decision. 

  • On the Work Programme, the EU is ready to continue to work with the Secretariat in order to ensure delivery of the outcomes, including the compilation of technical cooperation activities.

  • For the EU, agreeing by MC14 on a stable solution for the moratorium on custom duties for electronic transmissions remains a priority. If the moratorium were to end this would jeopardize progress to date towards the digital economy, threaten legal predictability and risk fragmentation in the conditions and ability for Members to participate in global digital trade. 

  • The EU urges Members to show leadership on this issue and to find a solution in advance of MC14.

  • In this context, we welcome the growing consensus amongst members on the importance of the moratorium. 

  • We look forward to discussions with the Facilitator and Members on the concrete outcomes for MC14 and beyond. 

6.  WTO Smooth Transition Support Measures in Favour of Countries Graduated from the LDC Category Pursuant to Paragraph 3 (WT/MIN(24)/34; WT/L/1189) – Communication from Djibouti on behalf of the LDC Group (WT/GC/W/967) – Request from the Gambia on behalf of the LDC GrOUP

  • The European Union would like to thank the LDC Group for adding this item on the agenda for discussion.

  • This year, work has continued in good faith, with some progress towards identifying LDC priorities.

  • While there is currently no consensus on the LDC proposal, there is still scope for members to examine and address specific concerns of graduating LDCs.

  • The EU remains ready in the run-up to MC14 to engage constructively on the issues faced by graduating LDCs.

7. Rethinking the Rules-Based Multilateral Trading System – Request from Brazil 

  • The EU thanks Brazil for putting this item on the agenda. 

  • Current trade tensions highlight that there is an urgent need for WTO reform, but we should not underestimate the current role of the multilateral trading system for our economies. 

  • WTO rules still provide the foundation in many core areas underpinning international trade, which is essential for traders’ daily operations. Predictability and stability that the rules-based multilateral trading system provides is crucial for the global economy.

  • The EU remains convinced that rules-based trade is the essential foundation for economic growth. A breakdown of these rules would create costly disruptions and spread further uncertainty and chaos.  

  • And at the same time, we must recognize that without deep and comprehensive reform, continued erosion of the basic floor the WTO provides is inevitable.  In other words, to preserve we need to reform. 

  • Economic modelling shows that developing members and smaller developed members stand to lose the most from the collapse of the system and a shift to a power-based system.  

  • 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 spillovers that have fuelled frustrations and loss of confidence in the system. 

  • Thank you.

9. Briefing on the First Ever Global SME Ministerial Meeting held in Johannesburg from 22-24 July 2025 – Request from South Africa

  • The European Union would like to thank the Delegation of South Africa for the information provided on the SME ministerial meeting in South Africa held in July with 60 countries participating. 

  • We hope that the meeting and the papers prepared by the International Trade Centre will prove valuable to address and advance the performance of micro, small and medium enterprises worldwide.

10.  Member Conversations on Current Economic Issues – Request from the european union and mexico

  • 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. 

  • At the July General Council, Canada and other past co-hosts reported on the first eight sessions, that have taken place since September 2024. 16 Members have co-hosted sessions, including both developing and developed Members, big and small. As we mentioned in July, the conversations are an essential step in building a common awareness and deeper understanding of this key issue among WTO Members. 

  • After the General Council in July, a ninth session has taken place, on 24 September, co-hosted by Mexico and the EU. 

  • The topic of the session was “Financing industrial policies while minimising negative spillovers”. The speakers examined the role of State banks and investment funds as providers of financial resources to industrialisation. The session built on the April session, hosted by Australia and the Philippines, which focused on State-owned enterprises in general.

  • The EU and Mexico chose the topic of finance because below-market finance has become a large form of State support, larger than tax concessions or traditional cash grants from State budgets. 

  • The EU believes that the presentations at the deliberation session showed that the current WTO subsidy rulebook is not fully up to date in this area. They showed how State interventions through banks and investment funds are frequently not notified to the WTO, and they are in general more difficult to detect than classical cash grants from State budgets. The presentation also pointed at ambiguities and gaps in the WTO rules, notably as regards transparency, definition of Public Bodies, and how to establish market benchmarks.

  • In conclusion, in our view the session helped Members to identify further gaps in the current WTO rulebook. As a part of WTO Reform, we will need to fill the gaps that we identify through rule-making in due course.

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

  • The European Union fully supports the dialogue on sustainable agriculture, and we welcome the ongoing reflections on how the multilateral trading system can better support agriculture and food systems towards sustainability and resilience.

  • We see this dialogue as a fruitful platform to exchange ideas for the WTO to deliver on sustainable agriculture, notably in view of agricultural negotiations within the Agreement on Agriculture and the repurposing of trade distorting support, 

  • Reforming trade distorting domestic support will be key to achieve sustainable food system. 

  • The WTO Agreement on agriculture gives scope to phase out trade-distorting support and environmentally harmful support, and progress towards sustainable agriculture. 

  • Therefore, we would encourage the entire membership to further reflect on how the future work streams 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.

13. China's Position Paper Regarding Special and Differential Treatment in the WTO – Communication from China

We recognise China's initiative to abstain from special and differential treatment within the WTO for new, current g and future negotiations. We welcome this as an important step, and we also note that other Members have in the past taken commitments to not seek, in WTO negotiations, advantages that are granted to developing countries. Such moves can hopefully contribute to a more balanced trading systems in the future and we also encourage other emerging economies to take similar actions.

Special and differential treatment is a tool that should in the future be used in a targeted and needs based manner. 

The true impact of this decision taken by China and other Members will depend on their actions in current and future upcoming negotiations and whether these align with broader reform initiatives within the WTO.

14. Incorporation of the Agreement on Electronic Commerce into Annex 4 of the WTO Agreement – REQUEST from the Members Parties to the Agreement on Electronic Commerce 

  • The EU fully supports a swift incorporation of the E-commerce Agreement.

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

  • 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 21st century challenges.

  • This agreement will bring concrete benefits for businesses and for consumers across the globe. 

  • 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 bringing 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 are fully committed to the incorporation of the E-Commerce Agreement as an Annex 4 agreement. We stand ready to engage constructively with interested Members to discuss the details of the Agreement and address any questions or concerns that Members may have.