EU STATEMENTS AS DELIVERED AT THE SPECIAL DSB MEETING, 19 MARCH 2026

AGENDA POINT 1: EUROPEAN UNION AND CERTAIN MEMBER STATES – CERTAIN MEASURES CONCERNING PALM OIL AND OIL PALM CROP-BASED BIOFUELS

1. Recourse to Article 22.2 of the DSU by Indonesia (WT/DS593/20)

• The EU refers to its communication pursuant to Article 22.6 of the DSU which was notified to the DSB ahead of this meeting 

• The EU notes that Indonesia states that it considers that the EU has failed to comply with the DSB recommendations and rulings in European Union — Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels (WT/DS593/20), and that it requests authorization from the DSB to suspend the application of concessions or other obligations under the WTO covered agreements to the EU pursuant to Article 22.2 of the DSU.

• The EU hereby formally objects to Indonesia’s proposal. In particular, the EU strongly objects to the level of suspension of concessions or other obligations contained in the Indonesian request and claims that the principles and procedures set forth in Article 22.3 of the DSU have not been followed and that the proposal is not allowed under the covered agreements.

• The European Union further notes that it has acted transparently with respect to its implementation of the recommendations or rulings of the Dispute Settlement Body in this dispute and that it has offered a so-called “sequencing agreement” to Indonesia which would remove any procedural uncertainty regarding Indonesia’s rights pursuant to Article 22 of the DSU. The European Union therefore regrets Indonesia’s recourse to Article 22.2 of the DSU in those circumstances.

• The EU requests the matter to be referred to arbitration pursuant to Article 22.6 of the DSU, recalling that, according to this provision, concessions or other obligations shall not be suspended during the course of the arbitration.

• The EU refers to its status reports and earlier statements in the DSB on this matter.

AGENDA POINT 2: CHINA – WORLDWIDE LICENSING TERMS FOR STANDARD ESSENTIAL PATENTS

1. Request for the Establishment of a Panel by the European Union (WT/DS632/5)

• The EU reiterates its request for the establishment of a panel in the dispute with China relating to the authority of Chinese courts to issue binding and enforceable decisions fixing the worldwide licensing conditions for portfolios of patents (especially patents forming part of standards), including for non-Chinese patents, without the consent of both parties.
• The EU considers that this measure is inconsistent with China’s obligations under the agreement on trade-related aspects of intellectual property rights (TRIPs agreement). It unduly restricts the ability of patent owners to exercise and enforce their rights for non-Chinese patents in the territories of the WTO Members that granted those patents. Moreover, it undermines the principle of territoriality of patents. 
• As a result of the measure at issue, patent owners cannot enforce their exclusive rights arising from non-Chinese patents in the courts of the WTO members that granted their patents. Moreover, patent owners cannot freely negotiate and conclude licensing contracts for the use of their non-Chinese patents in other territories.
• Unfortunately, the consultations we held with China failed to solve the matter at hand.
• Therefore, in order to ensure consistency with WTO rules, the EU requests the establishment of a panel to adjudicate onthe measure at issue.

2^nd intervention

• The EU is surprised by China’s comment. As China is well aware, exceptionally, there is no regular DSB meeting scheduled in March because of MC14 in the end of the month. Thus, when it becomes clear that a special DSB meeting will take place in March at the request of another Member, the EU decided to reiterate its panel request in DS632 which had first been considered by the DSB in February (and objected to by China). In this manner, we stick to the normal timeline of a WTO dispute.