Members address trade concerns, current trade tensions at Goods Council meeting

Trade concerns

The CTG reviewed 36 trade concerns, with a new concern raised by Australia regarding India's certification process for cotton bales (Quality Control Order) 2023. It also considered, under other business, a request by the Republic of Korea to discuss the United Kingdom's safeguard measure on certain steel products.  

Trade concerns previously raised in the CTG have covered a wide range of measures relating to trade in goods across the WTO membership, including non-tariff barriers, environmental policies, import taxes, import/export restrictions, national security measures, halal certification, subsidy schemes, export controls, sanitary and phytosanitary (SPS) measures, discriminatory domestic taxes, administrative procedures and reciprocal tariffs.

They have also encompassed a wide range of sectors, including agriculture, semi-conductors and semi-conductor-manufacturing equipment, shipbuilding and food products as well as specific products, such as critical minerals, electric vehicles, electric batteries, liquors, air conditioners, apples and pears, cheese, pulses, cosmetics and tyres.

 

Current trade tensions

The United States made a statement in response to the notifications by the European Union, India, Japan and the United Kingdom proposing to suspend concessions under Article 8.2 of the WTO's Agreement on Safeguards in response to US tariff measures (G/C/W/863, G/C/W/864, G/C/W/865, G/C/W/866).

The United States said the tariffs imposed by President Trump were taken under Section 232, a national security statute, and the US was maintaining these actions pursuant to the essential security exception in Article XXI of the General Agreement on Tariffs and Trade (GATT) 1994. As these actions are not safeguard measures, the US said, the suspension of concessions under the Agreement on Safeguards was not applicable.

The EU, India, Japan and the United Kingdom took the floor to explain that they considered the characteristics of the measures as those of safeguards and thus had reserved their rights to suspend concessions under the Safeguards Agreement, without prejudice to ongoing negotiations.

Canada, the European Union and Norway made statements regarding the fragmentation of global trade through tariffs and the resulting global costs. They said the recent tariffs announced or implemented by the United States continued to severely disrupt global trade and undermine predictability in the international trading system, with rising economic costs across the globe for consumers and companies. They also voiced their support for the multilateral trading system, with the WTO at its core, but also recognized the need for reform of the organization and its rules to reflect today's economic realities.

Thirteen other WTO members took the floor to comment on the item, including the United States, which considered that the trading system had been unable to address trade imbalances and non-market policies and practices.  The US called for WTO reform, based on fairness and reciprocity.

Improving the functioning of the Council for Trade in Goods

The Chair of the CTG, Ambassador Gustavo Nerio Lunazzi (Argentina), reported on his consultations with members on improving the functioning of the CTG. Recommendations from members included enhancing the value of trade concerns discussions by focusing on their political aspects, avoiding repetition on technical issues raised at subsidiary bodies, and encouraging bilateral engagement. Members also proposed improving transparency through better use of digital tools, more effective notification processes and regular reporting on thematic sessions.

The Chair recommended continuing discussions in an informal meeting in September to further explore these ideas and foster inclusive, member-driven engagement. Ten members made statements under this agenda item, supporting the Chair's report and suggestions.

Following on from discussions that took place earlier in the year, the CTG adopted a decision on the recording of the resolution of trade concerns, which takes into account the practices of the WTO's Committees on Sanitary and Phytosanitary (SPS) Measures and Technical Barriers to Trade (TBT). Three members took the floor to express their support for the draft as a positive symbol and move towards the Council's further efficiency. 

Caribbean Basin Economic Recovery Act

Members considered a request from the United States for a waiver from WTO rules for trade preferences provided under the Caribbean Basin Recovery Act.  The United States noted the waiver is similar to the one the CTG approved in 2019, except for programmes related to Haiti that have yet to receive the necessary legislative re-authorization. The initiative creates opportunities to expand trade between the United States and the Caribbean, thus promoting economic opportunity and growth in the region, the US added.

Several Caribbean members took the floor, encouraging members to favourably consider the request.  The CTG agreed to forward the draft decision to the General Council so it can be considered at its upcoming meeting.

Next meeting

The next formal meeting of the Council for Trade in Goods will take place on 27-28 November, and the next informal meeting is scheduled for 24 September.

Share