Good morning, Chairman Lange, esteemed Members of the European Parliament, and the Steering Committee of the Interparliamentary Union.
It’s a privilege to be right here with you in the present day. I’ve a deep appreciation for the complexities of your work and the pivotal place you occupy in bringing collectively worldwide establishments with the general public you symbolize.
As Parliamentarians, your engagement on WTO issues is important — not just for shaping commerce coverage however for making certain that our work delivers actual and significant advantages to the general public. Parliaments function the voice of the folks in international commerce discussions, and your management is essential in making multilateralism each efficient and conscious of the wants of your residents.
At this time, because the WTO marks its thirtieth anniversary, and its eightieth starting because the GATT, I’ll concentrate on two urgent matters. First, I’ll describe the negotiating priorities outlined by the WTO’s Members as we gear up for the 14th Ministerial Convention, scheduled to happen in March subsequent yr in Cameroon. Second, I’ll contact upon the broader geopolitical context — a topic that I do know is entrance and middle.
Fish
Let me start with a topic that’s particularly vital to exhibiting the success of the multilateral buying and selling system for financial and environmental sustainability: fisheries subsidies. Considered one of our Members’ most urgent priorities is to make sure the entry into pressure of the Settlement on Fisheries Subsidies, whereas additionally advancing and finishing the negotiations on the second section, to attain even deeper disciplines. These efforts are important to defending our oceans and selling sustainable fishing practices worldwide.
The landmark WTO Settlement on Fisheries Subsidies concluded at MC12 in 2022 introduced WTO Members a significant step nearer to fulfilling the SDG 14.6 mandate by prohibiting subsidies to fishing actions thought of to be among the many most dangerous to the sustainability of our oceans. It’s estimated that USD 22 billion of dangerous fisheries subsidies are offered every yr. By way of this Settlement, WTO Members have banned such subsidies offered to vessels concerned in unlawful, unreported, and unregulated (IUU) fishing, fishing of overfished shares, and fishing within the unregulated excessive seas.
IUU fishing accounts for roughly 20% of the world’s catch, depleting international fish shares. Furthermore, the FAO estimates that nearly 38% of worldwide fish shares are overfished, and by some measures, the devastation is even increased. The AFS might help to reverse this vital and worsening lack of pure sources.
Nevertheless, the total potential of the Settlement will probably be realized solely as soon as it enters into pressure, which requires the acceptance of two-thirds (or 111) of WTO Members. Thus far, 90 Members have deposited their devices of acceptance, bringing us inside hanging distance of our purpose — we want simply 21 extra.
I want to sincerely thank the European Union for being among the many first to simply accept the Settlement. As well as, beneficiant contributions by the EU and its member States to the Fish Fund will assist growing and least-developed Members with the implementation of the Settlement if they’ve deposited their acceptances. We’re so near entry into pressure however not fairly there but. I strongly urge you to proceed your management by encouraging and serving to those that haven’t but formally accepted the Settlement to take action as quickly as attainable. And for these right here in the present day from the IPU Steering Committee who haven’t deposited, please rely on the WTO Secretariat that will help you any approach we are able to. We’re aiming for the entry into pressure of the Settlement earlier than the Third UN Ocean Convention (UNOC3), going down in June in Good, co-hosted by France and Costa Rica. The necessity to get this achieved is pressing, and we’re relying on everybody to work to fulfill the purpose.
The second precedence associated to fisheries subsidies is concluding the second wave of negotiations on extra disciplines.
On the WTO Common Council assembly final December, it was clear that just about all Members, aside from just some, had been prepared to conclude the negotiations based mostly on the latest draft textual content circulated final November (TN/RL/W/285). Whereas some Members have famous that the disciplines are not excellent, they nonetheless acknowledge the substantial worth of the present package deal in curbing subsidies that contribute to overcapacity and overfishing. Nevertheless, these Members that don’t assist the textual content have expressed basic variations.
Whereas no settlement is ideal and each Member could have points they want to modify, it’s in everybody’s curiosity to attain an consequence. If Members fail to take action, the absence of disciplines on overcapacity and overfishing will imply continued deterioration of fish shares for everybody. We’re at a tipping level.
We stay dedicated to bringing this second wave of negotiations throughout the end line and can proceed to depend on the constructive engagement of these current right here in the present day to make this a actuality. Pressing motion is required for each financial and environmental sustainability.
Dispute Settlement
The second precedence is reforming the WTO’s dispute settlement system to make sure that WTO guidelines stay significant for the good thing about all Members.
At MC12 in 2022, WTO Members dedicated to having “a totally and well-functioning dispute settlement system accessible to all Members by 2024” and reiterated this goal at MC13 final yr. This deadline has handed, and Members are at the moment working to determine a path ahead. I want to thank the European Union and others on this room for his or her constructive stance and continued engagement within the reform course of.
Following MC13, the reform of the DS system was formally superior beneath the management of the Everlasting Consultant of Mauritius, who, along with six co-convenors on the knowledgeable degree, labored to deal with excellent points. These included the matters of enchantment/evaluation, accessibility, and “works achieved to this point”. For the reason that departure of Mauritius’ Ambassador in final November, the Common Council (GC) Chair continued to straight oversee the reform course of, partaking with Members to collect views on how you can construct upon the progress and additional advance the reform.
The reform course of has already resulted in a number of draft texts totally different areas. Notably, Members have developed a sophisticated substantive draft on “Capability Constructing” and “Technical Help”. That is essential for enhancing the technical assist we present to growing Members. Whereas Members made strides within the discussions surrounding enchantment/evaluation, this stays one of many more difficult points of the reform, and additional efforts are wanted to resolve the excellent points.
I do know that our Members are awaiting phrase from the United States as to its place. I stay hopeful that we are going to proceed to make progress on this important work.
Within the meantime, the WTO continues to function the main discussion board for resolving worldwide commerce disputes. Eight disputes are at the moment ongoing, together with eleven lively consultations. We’ve got additionally noticed a rise in negotiated options amongst Members, with the panel course of usually serving as a catalyst for these agreements. The dispute settlement work on the WTO stays sturdy.
Agriculture
Third, it’s important that WTO Members make progress on agriculture.
Agriculture is predicted to be a central factor on the MC14 agenda, particularly due to its basic function in supporting meals safety and driving socio-economic improvement, notably throughout the African continent. Consensus has remained out of attain as to the method and timeline for these negotiations. Because the outgoing Chair of the negotiations outlined in his latest report (JOB/AG/265), rebuilding belief and setting credible targets is crucial to progressively restoring an efficient negotiating course of and reaching an agricultural consequence in March 2025 in Yaoundé.
Plurilateral initiatives
The fourth precedence is for Members to discover a solution to incorporate the outcomes of plurilateral joint initiatives — the Funding Facilitation for Growth (IFD) Settlement and the Settlement on E-commerce — into the WTO rulebook.
These plurilateral initiatives symbolize the alternative for like-minded Members to determine new and impressive guidelines amongst themselves and break new floor inside the WTO framework. They co-exist with the idea of multilateralism and don’t cut back any WTO rights for non-participants.
The IFD Settlement at the moment has 126 WTO Members as events, together with 90 growing and 27 LDC Members, in addition to the EU. It goals to foster sustainable improvement by bettering the funding local weather via higher transparency and predictability and to facilitate funding flows, notably to growing and LDC Members. The proponents of the Settlement search to include it into Annex IV of the WTO Settlement as a plurilateral settlement, with its advantages utilized on an MFN foundation to all WTO Members. Doing so requires consensus amongst our Members. Nevertheless, a couple of Members have expressed opposition to its incorporation, citing systemic considerations and the affect on multilateralism. The proponents proceed work to chart a path to combine these vital disciplines into the WTO rulebook.
Ninety-one WTO Members, together with the EU, have concluded negotiations on the textual content of the Settlement on Digital Commerce and offered it to the Common Council the day earlier than yesterday for incorporation into the WTO rulebook. The Settlement goals at enabling digital transactions and selling digital commerce facilitation, making certain an open setting for digital commerce, and selling belief in e-commerce. It additionally has provisions on cooperation and improvement. As with IFD, a couple of Members oppose on systemic grounds.
Multilateral work on e-commerce
By way of multilateral work on e-commerce, engagement continues beneath the multilateral Work Programme on Digital Commerce, as outlined within the MC13 Resolution, to be accomplished by MC14. In January, we held a Devoted Dialogue on bridging the digital divide, specializing in infrastructure, connectivity, and web entry. One other session in February will discover authorized and regulatory frameworks, together with client safety, privateness, and cybersecurity. These periods goal to share nationwide experiences, delve deeper into key themes, and mirror on actionable concepts. The purpose is to establish concrete steps and proposals for Ministers’ consideration at MC14.
One other vital resolution level is whether or not to increase the moratorium on the gathering of duties on digital transmissions, set to run out on 31 March 2026 or at MC14, whichever comes first. In December, we convened a devoted info session that includes enter from the WTO Secretariat, IMF, UNCTAD, OECD, and South Centre. The session aimed to evaluation present research on the moratorium’s affect, foster discussions on its scope and definition, and discover various taxation approaches. I encourage you to have interaction in an open dialogue and discover parts that would assist set up a widespread floor to advance on this vital subject.
Growth
Every of those workstreams carries a robust improvement dimension, which stays a prime precedence for a lot of of our Members, as growing international locations make up two-thirds of our membership. Just some weeks in the past, WTO Members held a forward-looking retreat targeted on leveraging commerce as a instrument for improvement and charting a path ahead. We are going to construct on this profitable engagement within the lead as much as MC14.
Geopolitical context
Members of Parliaments, I might be remiss to not say something in regards to the present geopolitical state of affairs and its affect on commerce. We reside in tumultuous occasions — occasions when commerce measures and in addition countermeasures are introduced and carried out inside mere days, generally hours. The local weather of uncertainty impacts companies that function internationally and depend on provide chains unfold throughout totally different corners of the world. Such volatility can disrupt financial stability, have an effect on funding plans, and upset provide chains not solely inside Europe however throughout the globe.
It’s in occasions like these {that a} secure and predictable buying and selling setting, anchored by the multilateral buying and selling system and the World Commerce Group, is extra obligatory than ever. We had been established and designed to advertise transparency, stability, and predictability in international commerce. Over the previous 30 years, the WTO — which an entity composed of its Members — has been working diligently to uphold these ideas, to safe a enterprise setting that fosters development and cooperation. The WTO continues to cowl 80% of worldwide commerce, which stays unchanged regardless of latest developments. No single Member dominates the system — not even america, which accounts for 15.9% of worldwide commerce.
Europe, with its dedication to open markets and a rules-based buying and selling order, has been a cornerstone of the multilateral system and has lengthy championed the reason for multilateralism and of a predictable buying and selling setting.
Nevertheless, allow us to do not forget that the multilateral system can’t be taken as a right. Its energy and effectiveness just isn’t computerized; it relies on you, its Members. Our estimates point out {that a} collapse of the buying and selling order might end in a staggering double-digit loss in international GDP. And even the mere presence of uncertainty chips away at our collective prosperity, eroding welfare little by little.
That’s the reason in the present day, I enchantment to you with an vital reminder: the way forward for the multilateral buying and selling system, and the WTO’s function as a guardian of safety and predictability in international commerce, is in your arms.
If you happen to worth the WTO, please assist us ship on the negotiating agenda I’ve simply laid out.
If you happen to take into account WTO guidelines insufficient or imperfect, I encourage you to collaborate with different Members to strengthen and enhance them.
If you happen to assume that your pursuits are being harmed by measures taken by different Members, I urge you to make full use of the WTO’s platform — whether or not via our committees, bilateral consultations, or the dispute settlement system — to deal with and resolve these points constructively.
And as you take into account the applying of your individual commerce measures, notably in response to these taken by others, I urge you to stay level-headed and take into account not simply the instant results, but additionally the broader, long-term penalties, on customers, industries, and the worldwide buying and selling system. And allow us to not neglect the affect on growing international locations — when elephants battle, the grass will get trampled. And that hurts the elephants too.
In a time when commerce is more and more disrupted by unpredictable and destabilizing actions, your assist is essential in making certain that the rules-based system we’ve labored so exhausting to construct endures, in the end benefiting all.
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