The EU arrived here in Abu Dhabi with an ambitious and forward-looking agenda to revitalise this organisation and update the global rulebook. Multilateral co-operation within the WTO matters more than ever, at a time of geopolitical tensions, political uncertainty and the growing weaponisation of trade.
I am pleased that we end this long week of complex negotiations with some positive results, notably on e-commerce as well as important progress on development and sustainability.
On digital trade, we are very relieved that the "e-commerce moratorium" is now extended until MC14, maintaining the free trade of online services, such as the transfer of music, film, games, computer software or app updates. This is crucial for businesses – notably SMEs - and consumers around the world, enabling them to engage in electronic commerce and to access electronic services more cheaply and easily.
Almost one quarter of global trade is digital and will only continue to grow in importance.
The EU invested considerable time and political effort to build a coalition in favour of extending this deal to trade digitally without customs duties.
Going forward, we will continue our efforts at the WTO to create a more inclusive, predictable and rules-based global trading system that is fit for the digital economy. In particular, we will seek a long-term solution for customs duties on electronic transmission.
We were also delighted to celebrate the entry into force of the agreement on services domestic regulation. This will make trading for services easier within several dozen countries, to the benefit notably of smaller companies. It will reduce domestic services costs by an estimated savings of 110 billion euros.
Sustainability and Development
We made positive headway in the contribution of trade to environmental sustainability. We took forward the work on tackling plastics pollution, phasing out fossil fuels and promoting the circular economy, among others. The EU also hosted a meeting of the Coalition of Trade Ministers on Climate. Ministers from 61 countries also adopted voluntary trade-related actions to tackle the climate crisis.
The EU also played a leading role in delivering outcomes that will integrate developing countries more firmly into the global trading system. Some 123 WTO Members finalised a deal to facilitate investment and support development. This new Agreement on Investment Facilitation for Development (IFD) aims to harness the economic potential of foreign direct investment to boost development in poorer countries. The next step will be to incorporate this agreement into the WTO rulebook.
The accession of two new LDC members - Timor Leste and Comoros - to the WTO this week, highlights the value countries around the world still place on a shared global rules base for trade and investment. Ministers also adopted a decision to help least developed countries as they graduate to a higher level of development.
Beyond supporting least developed members, WTO members took a step towards improving clear and effective implementation of special and differential treatment for all developing countries in the key areas of standards for market access.
Separately, many members here attended our Solidarity for Ukraine event on Sunday, two years since the start of Russia's brutal and illegal invasion. Attending countries pledged to facilitate Ukrainian exports and supply chains.
FISHERIES AND AGRICULTURE
We were however disappointed at lack of breakthroughs on agriculture and on fisheries.
We did not progress on an agriculture package, to the detriment of most vulnerable countries, despite our pragmatic engagement. Divergences were too large to be solved.
We deeply regret that it was basically just one WTO member that blocked a comprehensive agreement on banning harmful fisheries subsidies worldwide.
A deal was on the table to build on the outcome reached at the 12th Ministerial Conference, and fulfil the mandate set by the UN Sustainable Development Goal 14.6.
It is unfortunate that a failure to reach a deal will have the most adverse impact on Small Island Developing Countries, who rely on sustainable fish stocks for the livelihood of their fishers, which is crucial for their sustainable economic development.
Dispute settlement reform.
The EU has consistently called on the WTO membership to make headway on reforming the dispute settlement system, which is critical to the WTO's overall legitimacy and to stopping the erosion of trade rules.
WTO members recognised the progress made and reaffirmed their commitment to restoring a fully functioning dispute settlement system by the end of 2024. However, a solution still needs to be found on a reformed appeal system. Again, it is disappointing that there was no breakthrough on appeal, despite the overwhelming support of the membership.
The EU will continue to actively support work a more inclusive and fit-for-purpose global trade rulebook and to show leadership and engagement. We hope all our partners will replicate this can-do approach."
