OVERVIEW OF DEVELOPMENTS IN THE

INTERNATIONAL TRADING ENVIRONMENT

MINUTES OF THE MEETING

9 December 2015

Chairperson: H.E. Mr Atanas Atanassov Paparizov (Bulgaria)

INTRODUCTORY REMARKS BY THE CHAIRPERSON

1.       Good afternoon and welcome to this meeting of the TPRB, which was convened by Airgram on 19 November.

2.       The purpose of this meeting is for Members of the Trade Policy Review Body to undertake their annual overview of developments in the international trading environment which are having an impact on the multilateral trading system, as provided for in Paragraph G of Annex 3 of the Marrakesh Agreement.

3.       As mentioned in the Airgram, today's discussion is assisted by the Director-General's annual report which sets out the major activities of the WTO and highlights significant policy issues affecting the trading system. This report was circulated in document WT/TPR/OV/18 on 17 November in English. In accordance with the Rules of Procedure for meetings of the TPRB, the Report was issued as an unrestricted document.

4.       At the outset, let me briefly recall that the purpose of the Trade Policies Review Mechanism, according to Annex 3 of the Marrakesh Agreement, is to achieve greater transparency in, and understanding of, Members' trade and trade-related policies and measures. The TPRM is not intended to serve as a basis for the enforcement of obligations under WTO Agreements, for dispute-settlement purposes or to impose new policy commitments on Members. Although it goes without saying, I would like to stress that these fundamental principles also apply fully to the annual overview of developments in the international trading environment.

5.       Secondly, I would like to recall the Decision by Ministers at the 8th Ministerial Conference which called on the TPRB to continue and strengthen the trade monitoring exercise. In particular, Ministers expressed their commitment to comply with existing transparency obligations and reporting requirements needed for the preparation of the report, and to continue to support and cooperate with the Secretariat in a constructive fashion. It was recognized that the regular monitoring of trade-related developments enhances the relevance of the multilateral trading system.

6.       Specifically, the periodic reports by the Director-General - such as the Annual Overview before you today - provide Members with very useful information to keep up with the latest developments on a wide range of issues in international trade, including trends with respect to new trade policy measures implemented by the WTO membership in the past 12 months. Of course, the trade monitoring exercise in the WTO goes to the core of the TPRM mandate in its pursuit of increased transparency and predictability in the area of international trade and the creation of the Trade Monitoring Database in 2013 was a further step in this direction. The Director-General's Annual Report also provides a unique and welcome opportunity to take stock of important developments in the activities of the WTO, such as the state-of-play when it comes to compliance and timeliness of Members' notifications to the various bodies of the WTO.

7.       Before I share with you how I would propose to proceed this afternoon, I would like to convey the Director-General's regrets that he is not able to be with us this afternoon due to ongoing consultations in preparation for Nairobi. Fortunately, DDG Mr Agah agreed to step in at short notice and he will ensure that the DG is fully briefed on our discussion this afternoon.

8.       Now, my intention this afternoon is to proceed as follows: I shall first give the floor to DDG Mr Agah to introduce the Director-General's report and launch the debate. Following the statement of DDG Mr Agah, I shall open the floor for comments from delegations.

9.       I would now like to invite DDG Mr Agah to make his introductory remarks. You have the floor.

INTRODUCTORY REMARKS BY THE deputy DIRECTOR-GENERAL

10.    Thank you very much Mr Chairman. I am making the remarks on behalf of the Director‑General. I took this responsibility on behalf of the DG who has also asked me to convey to Members his regrets for not being able to participate in this afternoon's session. As the Chairman has said, I will duly brief him on the outcome of your meeting.

11.    Turning to the purpose of today's meeting, I am pleased to have the opportunity to introduce the DG's Annual Report on Developments in the International Trading Environment, which was circulated on 17 November. As always, this report is issued under the Director‑General's sole responsibility.

12.    The report that is before you today comes at a very significant juncture for the multilateral trading system in general, and for the WTO in particular. First, the downturn in world trade observed at the time of the last monitoring report continued in the second quarter of 2015 and global economic growth remained modest and unevenly distributed across countries and regions. As you know, the Secretariat recently lowered its forecast for world merchandise trade volume growth in 2015 to 2.8%, and reduced its estimate for 2016 to 3.9%. Second, against this backdrop of global economic uncertainty, the WTO is on the eve of convening its first ever ministerial conference in Africa, a historic milestone on the 20th anniversary of the Organization.

13.    Before I go into the more specific conclusions and trends identified in the Director-General's Annual Report, allow me briefly to provide you with a few general comments about the nature and objective of this Overview. First and foremost, this report is about transparency and about highlighting selected developments and trends in the international trading environment in the period from mid-October 2014 to mid-October 2015. As such, the report provides a broad account of a plethora of trade issues, including recent trade policy reviews, regional trade agreements, the Trade Facilitation Agreement, ITA expansion, Aid-for Trade and Government Procurement – to mention but a few. In addition, but in line with past practice, the report also takes a more comprehensive and in-depth look at the operation of transparency provisions contained in the various WTO agreements and, in particular, the record and timeliness of Members' notifications to the WTO. The Annual Overview also provides a prominent outlet for taking stock of recent trends in trade policy-making in such diverse areas as trade remedies, SPS, TBT and services and for providing a snapshot of the multitude of trade concerns which have been raised by delegations across WTO bodies over the past 12 months. Finally, the report before you today is part of the WTO's regular monitoring exercise which looks at the implementation of trade-related measures across the membership during the period under review.

14.    In other words, and to come back to the central theme of the TPRM, the Overview of Developments in the International Trading Environment is an exercise in transparency which I am sure is of benefit to the membership.

Preparation of the report

15.    I would now like to say a few words on the process of the preparation of the DG's Report, in particular regarding the section that deals with specific trade and trade-related measures.

16.    The information on country-specific measures identified in the section dealing with trade in services and in the four annexes to the Report is based on inputs submitted by Members and other official and public sources. Members concerned have been provided an opportunity to verify the accuracy of that information. In those instances where it has not been possible to verify a measure this is clearly indicated. In this context, I would like to thank the delegations who have participated in this exercise by providing relevant information on time and by ensuring subsequent verification of reported measures. These inputs not only help expand the coverage of the report, they are also crucial in ensuring the accuracy of the information contained therein.

17.    Over the past year, the Secretariat has undertaken a concerted effort to reach out to those delegations and groups that have yet to take an active part in the trade monitoring exercise. The result has been a 10% increase in the number of WTO Members which participate actively in the preparation of the monitoring reports compared to last year. This is a positive development, but it still means that more than 50% of our membership did not participate in the monitoring exercise during the period under review. We must work together to improve on this – in particular in those regions where the rate of participation remains low.

18.    As in the past, it remains a matter of concern that this information-gathering process on certain types of measures, especially on so-called behind-the-border measures, including general economic support, is more challenging.

19.    Finally, let me emphasize that the trade monitoring exercise is a constantly evolving product and one which seeks to provide a sound, realistic and factual picture of significant trends in trade policy-making and of the implementation of specific trade-related measures – facilitating as well as restrictive. Of course, we are constantly aiming to improve the reports, including in ways which present the principal conclusions more clearly and in a manner which allows policymakers to access and utilize the findings more easily. In this context, a dedicated discussion among Members could be useful in terms of providing further ideas, guidance and suggestions as to how to improve the trade monitoring exercise – in particular in light of the fact that the global economic conditions under which the monitoring reports were commenced have changed considerably. As you may remember, at our meeting in July some delegations suggested the idea to hold informal consultations on how to improve the exercise. We understand that these consultations could be carried out in the context of the next Appraisal of the TPRM.

Policy issues arising from the report

20.    Let me now turn to the substance of the report. Rather than repeating the findings made in the report, I would like to focus here on what I believe are the "significant policy issues affecting the trading system" that emerge from this report.

21.    A first significant policy issue that I would like to highlight concerns the risk posed by the continued accumulation of trade restrictions in a climate of global economic uncertainty. 75% of all restrictive measures implemented since 2008 are still in place and we are not seeing the kind of rollback to which many Members have publicly committed themselves. Of the 2,557 restrictions (including trade remedies) recorded by the monitoring exercise since October 2008, only 642 have been removed. The addition of new restrictive measures, combined with a slow removal rate, remains a persistent concern. As noted in the mid-year monitoring report, the longer term trend in the number of trade restrictive measures requires continued vigilance.

22.    This DG's Annual Report confirms that WTO Members continue to show a degree of restraint in taking new trade restrictive measures with the introduction of such measures remaining relatively stable since 2012. During the period under review, 178 new trade-restrictive measures were put in place – an average of just under 15 new measures per month. Despite this apparent restraint, Members must do more to resist the temptation to impose new trade restrictive measures, to eliminate existing trade restrictions and to contribute actively to enhancing transparency with regard to non-border measures.

23.    More encouragingly, however, the WTO membership continued to adopt measures aimed at facilitating trade, both temporary and permanent in nature. Members implemented 222 new trade‑facilitating measures during the period under review – an average of almost 19 measures per month, the second highest number since the beginning of the monitoring exercise in 2008.

24.    A second main development that emerges form the report is that Members' compliance with the various transparency mechanisms in the WTO remains unsatisfactory. This is not a new issue, and although we have seen important improvements – especially in the area of notifications from developing countries – a lot more work remains outstanding. This is very clear from section 5 of the report, which contains a detailed overview of Members' record of notifications. I think we all agree that compliance with transparency provisions is fundamental not only to trade policy makers, but importantly also to businesses engaging in day-to-day trade.

25.    A third significant policy development is the increasing activity in RTAs. The DG's Report shows that WTO Members notified 11 RTAs to the WTO during the period under review as compared to 9 RTAs during the previous period. As of 15 October 2015, the total number of RTAs notified to the WTO and to the GATT before it, amounted to 265. The WTO Secretariat has also identified and verified, through the respective parties, 75 RTAs that are in force, but not yet notified to the WTO.

26.    In addition to their existing RTAs, most WTO Members are actively negotiating new RTAs and a few have elicited recent interest because they are between several Members rather than bilateral. Of course, much of this interest is due to the fact that if these negotiations are brought to fruition, they will consolidate the existing bilateral preferential relationships that already exist among several parties.

27.    I think it is clear that we must continue the work to further deepen our understanding in this area to ensure that RTAs and the multilateral trading system can move forward together in the most effective way possible.

Concluding remarks

28.    To conclude, the overall assessment of the DG's Annual Report is that the uncertain global economic outlook continues to weigh on international trade flows. It shows that the continuing increase in the stock of trade-restrictive measures recorded since 2008 remains of concern. Looking towards the 10th Ministerial Conference in Nairobi in less than one week, WTO Members should reflect on the central role of the multilateral trading system as a predictable and transparent framework helping Members resist protectionist pressures and as a stable and inclusive platform for pursuing further multilateral trade liberalization.

29.    Thank you Mr Chairman. This concludes my statement on behalf of the Director-General. I look forward to our discussion.

STATEMENTS BY MEMBERS

CANADA

30.    I would like to thank you Chair for convening this meeting and thank DDG Mr Agah for providing this presentation on behalf of the Director-General who is very busy in trying to facilitate discussions to ensure that we have positive outcomes next week in Nairobi.

31.    While we have some more specific reactions that I'll get to in a moment, I would like to say at the outset that we certainly share the concerns regarding the lowering of global trade forecasts and the continued rise in trade-restrictive measures. As we look to next week's Ministerial Conference in Nairobi, these observations remind us of the importance of continuing every effort to ensure that the multilateral trading system continues functioning well. In this regard, we compliment the Director-General's sustained and tireless efforts to facilitate a positive outcome in Nairobi.

32.    I would also like to stress Canada's continued support for the WTO's trade monitoring and surveillance activities. Both the country-specific and global trade monitoring activities of the TPRB are helpful tools for helping Members resist protectionism. Such transparency, and the resulting spotlight that informs Members and traders, provides a valuable check against trade inhibiting policies.

33.    Now, turning to the report, Canada is concerned about the increase in trade restrictive measures – up 17% compared to the previous annual reporting period. The fact remains that, as has been indicated, 75% of the trade-restrictive measures implemented since 2008 remain in place.

34.    Frankly this number is too high and undermines our efforts here at the WTO and in other international fora such as the G20 to resist protectionism for the benefit of the global economy. Canada continues to encourage Members to work to eliminate existing trade restrictions and also to refrain from implementing new ones.

35.    With that said, there are some positive developments that we would like to acknowledge. For example, the rate of implementation of trade-facilitating measures during the period was encouraging, as was the drop in anti-dumping initiations.

36.    We also welcome the increase in participation in this exercise, up 10% since the previous period. However, we note that participation still remains below the majority of the membership (47%). We also urge Members to treat the verification requests no less importantly than the initial requests for information, so that we can arrive at an accurate and correct report.

37.    Lastly, we would like to thank the Director-General for his continued updates with respect to economic, trade and policy developments. Moreover, we also extend our appreciation to the TPRB, the Secretariat, the Members and others who participated in Canada's tenth Trade Policy Review this year. We acknowledge the high participation of Members and appreciated their feedback and involvement in this process.

38.    I look forward to hearing other Members' views on this report and thank everyone for your attention.

SINGAPORE

39.    We would like to express our appreciation to you and to DDG Mr Agah for presenting the report on behalf of the DG. We would also like to express our appreciation to the Secretariat for the continued good work in monitoring developments in the international trading environment that has an impact on the multilateral trading system. We would also like to commend the Secretariat for this comprehensive and informative report.

40.    This report is timely as it sets the context and helps to inform our Ministers' discussions in Nairobi next week. We note that the picture is a mixed one. The report highlighted some positive trends such as the rise in the number of trade-facilitative measures and liberalization in services sectors. However, the number of new trade-restrictive measures implemented during the period under review increased by 17% from the previous period. The elimination of existing measures has also not kept pace with the introduction of new measures. This is worrying, especially given the trend of slowing global trade growth. We call upon Members to redouble efforts in eliminating their existing trade-restrictive measures and desist from adding new ones.

41.    Transparency is one of the core functions of the WTO and monitoring reports such as these plays a key part in helping to stem protectionist pressures. As such, we urge more Members to respond to the Director-General's request for information for future reports. With the WTO Membership covering 98% of global trade, if we were all to participate fully in this exercise, this would be a very important piece in global economic governance. It would also further cement the WTO's role as the pre-eminent institution for global trade. Otherwise, we risk ceding this initiative to other platforms that are outside of Geneva which do not have multilateral representation. While we have seen an improvement this review year, the response rate is still not satisfactory, with more than half of the Members not responding. We appreciate the Secretariat's outreach efforts, and we stand ready to work with the Secretariat to explore other creative methods of outreach.

BRAZIL

42.    At the outset, let me thank DDG Mr Agah for conveying the DG's report and, therefore, to extend Brazil's recognition to the Director-General and his team for this report on the international trading environment. This document provides us with useful insights into the current state of global trade.

43.    The upside pointed out by the report is the significant number of trade-facilitating measures. The downside, however, is that the stock of trade-restrictive measures continues to grow unabated. Also on the negative side, we note that the trade growth rate remains below the average prior to the 2008 global crisis, and there is no indication of a quick recovery in the short term. Slower trade growth is a reason for concern, as it impacts on the wellbeing of our societies, reducing employment and raising inequalities between and within countries.

44.    Brazil remains a fully committed Member of this Organization and of the multilateral trading system. Once again, we have given concrete proof in that regards, as shown by the report. We reduced tariff rates of more than 3,400 items in the period under review, particularly those related to capital goods, telecommunications, pharmaceuticals and chemicals.

45.    On top of that, and despite stringent budgetary constraints, the Brazilian Government implemented measures streamlining customs operations, such as the "Brazilian Authorized Economic Operator" for imports and the new drawback programme web system.

46.    Against this backdrop, we will be embarking for Nairobi in a couple of days.

47.    I will not tire you with the iteration of the importance of the negotiating arm of the WTO to correct structural imbalances in the multilateral trading system, as we have consistently mentioned in meetings to discuss the future of the Organization.

48.    But, at a crucial moment such as this, it is important to renew the core message that we all have a responsibility to deliver at the MC-10 to unlock the potential for increased trade flows for the benefit of our societies.

RUSSIAN FEDERATION

49.    Russia welcomes the WTO annual report on the recent developments in the international trading environment. We appreciate the role of the Director-General and the contribution of the Secretariat in this informative monitoring exercise.

50.    We believe these periodical reports are very important in terms of enhancing transparency and predictability of global trade. Russia actively participates in all monitoring practices in the WTO and will continue to do so in the future.

51.    We share the key findings of the report and recognize the concerns of the continuing accumulation of trade-restrictive measures within the WTO economies. Unfortunately, current uncertainty with global economic recovery does not offer much hope for immediate positive prospects for trade.

52.    In such an environment any initiatives to counter or refrain from protectionism become even more valuable. In this context, we would like to refer to the G-20 and the APEC fora which set a good example to follow.

53.    We also regret to note that this year shows no decrease of "economically unmotivated" restrictive measures in international trade, which have clearly negative impacts both on the multilateral trading system and on bilateral economic relations.

54.    Nevertheless, we are encouraged by indications in the report of some positive trends, such as the growing number of trade-liberalization measures as well as the fall in the number of trade remedy investigations, undertaken by the WTO Members.

55.    The central role behind this positive piece of news belongs to the multilateral trading system which stands today as the sole universal mechanism for securing free trade standards and fighting protectionism globally.

56.    In this context, Russia remains of a strong belief that the upcoming WTO Ministerial Conference in Nairobi can be fruitful and can bring stimulus for further enhancement of the multilateral trading system in the interest of all.

SWITZERLAND

57.    First, we would like to thank DDG Mr Agah for his introductory remarks on behalf of the DG and the WTO Secretariat for having produced this new annual report on "developments in the international trading environment". The report offers a comprehensive picture of the situation, problems and challenges we are currently facing in this area of international trade and trade policy.

58.    Generally speaking, optimal decision-making is always more likely to happen in an environment characterized by perfect and complete information. We therefore recall the importance of the continuation of this exercise as it brings additional transparency to current trade policies and practices.

59.    Concerning the participation, we thank all Members that have contributed to this exercise, in particular those with limited resources. We note that 47% of the membership, counting the EU and its member States separately, have replied to the Director-General's request for information. We appreciate that participation has increased by 10% compared to last year. We also appreciate the publication of the list of Members that have contributed. We hope this additional transparency element can incentivize other Members to cooperate in subsequent reports. In the future, we would be interested in knowing the share of world trade that the contributing Members cover. This would be useful information to assess the significance of the results and show the comprehensiveness of the report.

60.    On the substance, the report highlights the continuous slowdown of trade growth. This is worrisome as this implies rather bleak global growth. Although many factors contribute to the slowdown of trade growth, two of them are directly linked with our everyday activities – (i) an increase of trade-restrictive measures, and (ii) the lack of trade liberalization.

61.    As the report makes clear, there is a continued accumulation of trade-restrictive measures, especially by G-20 members. The repeated commitment by the G20 to resist protectionism must now be followed by action. Representing about 85% of world GDP and 80% of world trade, these countries have a particular responsibility in this regard. More than ever, fighting protectionism must remain a top priority.

62.    Unsatisfactory trade growth is also the result of widespread use of trade remedies as many Members continue to resort on a large scale to anti-dumping measures as a normal instrument of trade policy. Even though some of these measures might be in compliance with WTO rules, an abusive application of such measures is dangerous for the functioning of the world economy. These measures are detrimental to global value chains, weaken competition policy and tend to generate reciprocal reactions from trading partners.

63.    On a positive note, the report records an increase of trade-facilitating measures. The economic outlook suggests, however, that this is not enough. This is where the WTO must take action, through our negotiating function. The multilateral trading system can do and must do more to drive economic growth, create jobs, and reduce poverty. We would be well advised to keep that in mind in the crucial coming days. We will have to find a way forward in the multilateral trade agenda in order to address the core DDA issues in an appropriate manner.

64.    Finally, we encourage the continuation of the monitoring of trade-related measures. With this monitoring, the WTO assumes a crucial role in world trade and contributes to significantly containing protectionist pressures. A further strengthening of this role is therefore in the collective interest of all WTO Members.

EUROPEAN UNION

65.    Let me start by thanking the Director-General for his report, the DDG for his presentation and the Secretariat for the good work done. We continue to value this exercise for its contribution to a better understanding of what happens in the global economy. This is an important thing to maintain.

66.    The EU regrets, like others, to note that the stock of the trade restrictive measures continues to grow because the pace of removal of the barriers is not sufficient.

67.    The EU calls on Members to make renewed efforts to phase out trade restrictions introduced. This is important since the WTO Secretariat recently reduced its forecast for world merchandise trade growth from 3.3% to 2.8% and for next year to 3.9%. This is the fourth year that the world trade does no longer grow at a higher pace than the global GDP.

68.    Some other colleagues have mentioned that we are on the eve of the 10th Ministerial Conference of the WTO in Nairobi. We strongly support the call of the Director-General to reflect on the central role of the multilateral trading system as a predictable and transparent framework that helps Members to resist protectionism and protectionist pressure. We also believe that the multilateral trading system must remain an inclusive and relevant platform for pursuing further trade opening and rule making that responds to economic realities and to the needs and interests of the entire membership.

69.    Regarding transparency, the report usefully recalls that there is room for improvement. The participation and response rates stands at 47%, which is a 10% increase from previous year, but more can and needs to be done there. Transparency can also be improved in the work of the Committees and Councils. We are of the view that timely and comprehensive replies to the questions raised by Members in the various Committees are important. Finally, in the area of subsidies and STEs, only 50% of the membership seems to be complying with the transparency obligations. In the Committee on Subsidies and Countervailing Measures between 1995 and 2013, about 50% of the membership has complied, according to the Secretariat's report. For STEs, the range seems to be of the same magnitude. There is really something to be done.

70.    Regarding the notifications of general economic support activities for this report, the EU shows the example. We would like to encourage others to be active. We share the view expressed by the Secretariat that the format and scope of the reporting on the general support measures could be an interesting topic to be discussed usefully in the next TPRM appraisal exercise. 

71.    In conclusion, the EU would like to thank again the Director-General and the Secretariat for the comprehensive annual overview.

CHINA

72.    Thank you, Mr Chair for convening this meeting, and my thanks also goes to DG Azevedo, DDG Mr Agah, and the Secretariat for preparing this comprehensive report.

73.    First of all, I highly commend WTO’s efforts in closely monitoring the international trade environment. This report, as well as the trade monitoring mechanism, has played a vital role in preventing major protectionism since the onset of the global financial crisis. Today, the global economic recovery is still weak. Trade is hardly acting as a catalyst for economic growth, but rather posing risk to world economy. Just recently, WTO lowered its forecast for world trade growth from 3.3% to 2.8% in 2015 and 4.0% to 3.9% in 2016. Our task of reinvigorating the global economy and international trade are even more complex and challenging.

74.    In this regard, the WTO must continue its trade policy monitoring practices. China will provide our full support to this effort. Meanwhile, I noticed that only 47% of the WTO membership has provided replies for DG’s request for information on new trade measures. I encourage all WTO members to contribute to this mechanism and collectively reinforce the monitoring function of the Multilateral Trading System.

75.    Despite of difficult global economic environment, this year’s report shows some encouraging signs. The pace of introducing new trade restrictive measures is generally in control, and there are more trade liberalizing measures in place. However, we should still be vigilant by the fact that the overall stockpile of trade restrictive measures is still growing, the annual increase of trade restrictive measures is as high as 17%, and some of the restrictive measures are now in disguised forms.

76.    And unfortunately, this report has again pointed out that China is the biggest victim of protectionism and trade restrictive measures. Anti-dumping investigations into Chinese products accounted for 28% of total number in the reporting period, and countervailing investigations into Chinese products accounted for 36% of all investigations. In this regard, I strongly urge relevant WTO Members to refrain from abusing trade remedy measures and strictly follow WTO rules and provisions when introducing new measures.

77.    Finally, as we are approaching the Nairobi meeting, I want to take this opportunity to stress the significance of further multilateral trade liberalization and the central role of WTO in promoting trade at the international level. I hope that with the hard work and collective efforts of all WTO members, we could achieve a significant and balanced outcome and have a successful 10th Ministerial Meeting in Nairobi next week.

MEXICO

78.    Mr Chairman, we thank the Director General and his team for this comprehensive and detailed report.

79.    There is no doubt that the monitoring exercise conducted by this Organization continues to be a valuable tool for assessing world economic and trade developments and any protectionist and/or liberalizing tendencies in international trade.

80.    We are, of course, dismayed to learn that WTO Members have applied 178 new trade restrictive measures during the period covered by the report, and that the overall stockpile of such measures continues to grow. Despite the lifting of 642 restrictive measures by October 2015, the report notes that the total number of measures in place has risen by 17% compared to the previous annual report.

81.    We must recognize that while this monitoring exercise provides a transparent framework for identifying possible protectionist tendencies, it has not been sufficient, and does not act as a barrier to prevent WTO Members from introducing new trade restrictive measures, which have continued to increase since 2008.

82.    While this information is not very encouraging, we also note that the number of investigations initiated by Members, and mainly those pertaining to anti-dumping, has fallen, and that most of the measures taken in the services sector are to facilitate trade.

83.    The net increase in trade restrictive measures is most certainly not good news in the current global economic context. The global economic landscape, as we near the end of 2015, is fairly bleak. Global growth remains modest, and the outlook is fairly uncertain due to the instability of commodity prices and exchange and financial markets, all of which has a detrimental effect on international trade. We are all aware that the WTO's forecasts for international trade growth have been revised downwards for 2016.

84.    We are concerned to see that many governments have responded to the uncertainty of world economic developments and their negative impact on global trade by withholding efforts to eliminate the protectionist policies introduced since the onset of the crisis and, moreover, by adopting new restrictive measures.

85.    The report clearly warns us not to lower our guard in relation to the monitoring of trade restrictive measures. Over six years have passed since the start of the word economic and financial crisis, and yet, regrettably, the number of accumulated measures has not decreased. This shows that once trade restrictive measures have been established, there is less likelihood of them being lifted in the future. We should therefore try to remove the incentives to apply this type of measure and remain vigilant so that we can take action where such measures may be inconsistent with WTO rules.

86.    As we have pointed out at previous Trade Policy Review Body meetings, the report provides valuable data that allows for a more in depth assessment of the effects of such measures on certain economic variables (e.g. employment and investment), beyond their impact on exports or imports. The relevance of this report would also be increased by Members participating more actively in the notification of both trade restrictive and trade facilitating measures. In light of the ratification of the Trade Facilitation Agreement, attention should be given to the efforts Members are making to comply with their commitments in this regard.

JAPAN

Trade Policy

87.    First of all, I thank the Secretariat for its comprehensive and accurate report. My thanks also go to the DDG for his presentation delivered on behalf of the DG.

88.    The Director-General's report notes that the WTO downgraded its forecast for world trade. The WTO now expects merchandise trade in 2015 to grow by 2.8% as opposed to its previous estimate of 3.3%. From a geographical perspective, merchandise trade in the Asian region in particular has decelerated.

89.    In the face of such a severe and uncertain economic environment and the associated surge in protectionist pressures, the number of trade-restrictive measures increased by 17% compared with the previous year.

90.    Given that WTO member countries have eliminated only about 25% of all restrictive measures since 2008, Japan would like to emphasize the difficulties involved in eliminating restrictive measures once they have been adopted. We encourage all members to acknowledge these difficulties and carefully consider the implications of any restrictive measures before adopting them.

91.    Let me now make some comments on trade remedy measures.

92.    The report notes that the total number of initiations of new trade remedy investigations was 165. We, all WTO members, should carefully monitor the trends of trade remedies and maintain transparency to prevent trade remedies from being abused and taken as a protectionist or trade‑restrictive measure.

93.    On the other hand, with regard to trade facilitating measures, WTO member countries newly implemented an average of 19 measures per month, which is the second highest number since 2008. Japan commends the efforts of its fellow Members and stresses the importance of maintaining this momentum of trade facilitation in order to expand global trade.

RTAs

94.    In terms of RTAs, WTO Member countries have been vigorously conducting negotiations on this subject. The report notes that the WTO was notified of 11 new RTAs during the reporting period, making a total number of 265 RTAs that the WTO has been informed of as of October 2015.

95.    Japan believes that these RTAs should be fully consistent with the WTO agreement, and hopes that these RTAs will contribute further liberalization on global trade under the multilateral trading system.

Further improvement of the report

96.    Before concluding, let me touch upon the issue of TPRB monitoring. Given the importance of this monitoring mechanism, we believe that it is most important to continue to strive for its improvement.

97.    With regard to preparation of the current report, we were glad to hear that more Members responded to requests from the Secretariat this time. The report notes that approximately 47% of all members contributed to this report.

98.    One thing we should mention about member contributions, however, is that the response rate from some regions was quite low. Japan is disappointed with the fact that only a few Members in the regions replying to the Secretariat’s request.

99.    “Transparency” is one of the key elements of the WTO rules. In this regard, we hope that more WTO Members will get involved in the process of making annual reports in order to make this report more comprehensive and credible. We believe those efforts will eventually enhance the transparency of our trade policies.

INDIA

100.  Please allow me to thank the Director-General for presenting the annual report (WT/TOR/OV/18) on the overview of developments in the international trading environment. I would like to thank DDG Mr Agah for his comprehensive statement this afternoon.

101.  Coming to the substance of the report, first and foremost, the report underscores that the continued economic uncertainty and uneven global recovery continues to affect the health of global merchandise trade. The picture on this front is clearly not very positive.

102.  The WTO Secretariat has made a further downward revision in its trade forecast and now estimates that world merchandise trade volume will grow only by 2.8% in 2015 and by 3.9% in 2016. In this regards, we believe that a successful conclusion of the DDA with credible developmental outcomes would be an important catalyst to spur global growth and development.

103.  On a more positive note, the overall picture regarding new trade-restrictive measures applied by Members during the period under review remains stable. The average number of trade‑restrictive measures taken per month in the current reporting period is just fifteen (15). Moreover, a total of 222 measures aimed at facilitating trade were taken during the reporting period – the second highest number since the beginning of the monitoring process. These are welcome trends but do not give the holistic picture.

104.  For an overall snapshot, one would need to look at the stock of restrictive trade measures introduced by Members since 2008. The stock of such trade restrictive measures has continued to increase, which remains a cause for concern for the global trading environment. These trends suggest that we would need to remain vigilant against protectionist tendencies, particularly affecting exports of developing countries.

105.  On a systemic plane, we feel that the analysis of trade-restrictive measures, which is essentially statistical in nature, may not give a correct picture unless accompanied by an analytical exercise to assess the real trade impact of such measures, which in particular have the potential to adversely affect developing country exports. Towards this objective, measures affecting trade in services, particularly relating to the movement of natural persons, would clearly merit a more expanded analysis in the report.

106.  It would also be useful to have an expanded treatment in future reports on the overall global economic outlook, seen from the trade perspective, and its impact on the international trading environment, a point that my delegation had highlighted last year as well.

107.  Finally, we support the Secretariat work in preparing trade monitoring reports, and would continue contributing by providing relevant information.

REPUBLIC OF KOREA

108.  I would like to join the previous speakers in extending our sincere appreciation to Director‑General, Deputy Director General and the Secretariat for their hard work in preparing this guiding report.

109.  The Director-General's report and presentation well capture the overview of developments in the international trading environments. It is indeed quite good to see that WTO Members adopted more trade-liberalizing measures than trade-restrictive measures during the review period, which has been the trend since the end of 2013.

110.  However, the report draws our attention to the fact that, though the introduction of new trade-restrictive measures has been stable since 2012, the overall stock of restrictive measures is continuing to increase due to the addition of new restrictive measures combined with a slow removal rate. These measures fall short of an outbreak of protectionism, but we should vigilantly monitor any developments to ensure that favourable environments are maintained.

111.  In addition, we would like to make two specific points.

112.  First, we are pleased to note that the number of initiations of trade-remedy investigations slightly declined during the period under review, from 15.5 to 13.8 per month. However, 165 newly-initiated investigations affect around 0.2% of world merchandise imports, which represent close to US$32 billion. While we certainly recognize that trade-remedy measures are legitimate rights of WTO Members under the WTO Agreement, we cannot disregard the trade-restrictive dimensions or the chilling effect on international trade. In this regard, we would like to urge Members to take more cautious and prudent approaches to trade-remedy measures.

113.  Second, we would like to refer to the report that only 76 Members, 47% of the membership, responded to the request to provide information on their new trade measures, even though the number of responding Members has slightly increased when compared to the previous report. We note that the lack of active participation of Members has made it difficult to assess the overall trends. To address this issue, it could be helpful to clarify first what constitutes "general economic support measures". The absence of such clarification may have compounded Members' insufficient reporting, making any assessment potentially partial and possibly inaccurate.

114.  In closing, we share the view that it is important to reinforce the monitoring mechanisms of the multilateral trading system by ensuring transparency - one of the key functions of the WTO. Believing that a vibrant multilateral trading system is the best insurance policy to overcome protectionism, Korea will continue to work closely and constructively with other Members in this endeavour to further strengthen the monitoring and surveillance mechanism of the multilateral trading system.

COLOMBIA

115.  We would like to begin by thanking the Secretariat for preparing this report, and DDG Agah for presenting it.

116.  This report is part of the commitment our Ministers made to duly comply with obligations concerning transparency and the submission of the information needed to prepare monitoring reports. In this respect, we welcome the 10% increase in the number of Members that responded to the Director General's request for information on measures taken during the period under review. We urge all Members to participate actively in this monitoring exercise, which is to the benefit of all.

117.  While not wishing to be repetitive, we consider it important to highlight the following points made in the report, which have already been mentioned by DDG Agah and a number of Members:

·       Trade facilitating measures, mainly those providing for tariff reductions have increased (222).

·       The application of new trade restrictive measures remains stable. However, the overall stockpile of restrictive measures has grown.

·       75 Regional Trade Agreements currently in force have not yet been notified to the WTO.

118.  As an assessment tool, this overview is important in the international trading environment. It is, however, even more important for assessing our role, as Members, in the development of trade policies. As on a number of previous occasions, we emphasize the role that the WTO has played from the very start in providing Members with a forum in which to discuss how trade measures should best comply with WTO commitments, and in guaranteeing the benefits of trade for the populations of all Members.

119.  Transparency is one of the pillars of this Organization and we must find a balance between the need for information to guarantee transparency and our future negotiating work, and the administrative burden that this would generate.

HONG KONG, CHINA

120.  We thank the DG and the Trade Policy Review Division for their efforts in compiling the useful report. Thanks also go to DDG Mr Agah for giving the presentation on behalf of DG today.

121.  As pointed out by other colleagues, during the period under review, WTO Members applied 178 new trade-restrictive measures, and the overall stockpile of restrictive measures continued to grow, up by 17% compared to the last annual report. This upward trend is indeed unfortunate. Besides, since 2008, only 642 restrictive measures have been removed, meaning 75% of all restrictive measures implemented still in place. Apparently, the rate at which Members are eliminating some of their trade-restrictive measures has remained insufficient to lower the stockpile.

122.  On the other hand, it is encouraging to note that the number of initiations of trade remedy actions has followed a decelerating trend and over 200 measures aimed at facilitating trade were taken in the period.

123.  Members are encouraged to exercise the greatest restraint in introducing new restrictive measures, step up positive actions to rectify existing ones and pursue further multilateral trade liberalisation. This would be particularly useful in building a predictable and transparent trading environment. Efforts made by Members in this respect are essential to the credibility of multilateral trading system, and are particularly important at a time of uncertain global economic outlook.

124.  It is encouraging to note that the response rate to DG’s request for information on measures taken during the period for compilation of this report accounts for 47% of the total membership of the WTO, which represents a 10% increase compared to the participation in the 2014 annual report. The increase in participation and involvement of several newcomers are positive developments. We appeal to Members which have not actively participated in this exercise to do so in the future.

SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

125.  My delegation joins previous speakers in thanking the Director-General and his team for the comprehensive annual report and the DDG’s briefing today.

126.  Like others, we attach great importance to this monitoring exercise, which we are convinced does help to improve transparency in the multilateral trading system.

127.  This report provides us with a clear picture of what has been happening in the international trade environment, particularly in terms of Members’ trade policies and measures, and their impact on the global trade.

128.  There is no doubt however, that for this exercise to be of real and lasting value, fuller and broader participation across the Membership is needed. It’s encouraging to see increased participation from Members this time. We look forward to seeing more engagement from Members and Observers in this exercise.

129.  Turning to the substance. We echo with the DDG and others, noting that the accumulation of restrictive measures still continue to increase since 2008. We are concerned that the slow pace of removal of previous restrictions somehow cannot drive the growth of global trade.

130.  On the other side, we are pleased to see that Members have adopted more trade facilitating measures than restrictive measures in the reporting period. We hope this trend will continue.

131.  Finally, we would like to urge all Members to reaffirm our commitment against all forms of protectionism, and to extend our standstill commitment to roll back protectionist and trade‑distorting measures. Even more importantly, we should be working collectively on strengthening and expanding markets rather than closing them, particularly at a time when the pace of recovery in world trade remains slow.

REPUBLIC OF MOLDOVA

132.  Mr Chair, thank you for convening this important meeting. We would like also to express our sincere gratitude and appreciation to the Director-General and the Deputy Director General as well as to the Secretariat of the TPR Division for their comprehensive report and for the contribution and all the efforts that they showed over this year.

133.  The report captured an overview of the developments in the international trading environment, optimistic in one way but also with problems, especially concerning restrictive measures.

134.  In this context, we would like to stress the necessity of strengthening the monitoring development of the Trade Policy Review. A couple of weeks ago, the Republic of Moldova benefitted from this important exercise: the monitoring of the Trade Policy Review. In this way, I would like to acknowledge and appreciate the interest of many delegations and the high number of questions submitted to our Government. I would like to emphasize that, since 2001, my country has liberalized its import and export regime and goods and has kept up to the commitments in trade in services. Reforms of the trade policies of my country start by market liberalization through the elimination of non-tariff barriers which was also stipulated in the report. The reform in the services sector is more complex. However, my country adopted important different legislations and sectoral as well. Regarding the regional economic integration and trade agreements, I would like to stress the importance of this principle and to underline that the Republic of Moldova has signed the Deep and Comprehensive Free Trade Area with the European Union and a FTA with Turkey in 2014.

135.  These commitments undertaken under this instrument relate the improving business climate and this can also show the transparency and the elimination of various protectionist measures.

136.  In conclusion, let me assure you that the report will be given high priority by our Government. We should continue working in the trade policy area under the fundamental WTO principles of predictability and non-discrimination of WTO Members, enhancing transparency and eliminating all the protectionist measures taking into consideration the centrality of the WTO in the global trade.

DEPUTY DIRECTOR GENERAL'S CLOSING REMARKS

137.  I take the floor first to say that, as a messenger, I think I have conveyed the DG's comments on the report to you. Second, as a good messenger, I have listened to you and I will duly transmit what I have heard from you to the DG.

138.  I would like to thank the delegations for their contributions and ideas this afternoon. We have taken note of your comments which we will transmit to the DG and which we will certainly take into account as we prepare for the trade monitoring work in 2016.

139.  On a final note, I want to inform delegations that the Secretariat and the Director-General will be sending out the usual request for information for the next monitoring reports in the first half of March. I would like to encourage you all to participate in the monitoring exercise and cooperate with the Secretariat as much as possible.

chairman's closing remarks

140.  Permit me to conclude the meeting by thanking you, DDG Mr Agah, and the 15 delegations that took the floor today. Their contributions will be taken into account in the preparation for the next year's overall review of the international trading environment. I believe that our discussion today has re-affirmed the importance of this exercise in providing enhanced transparency of Members' trade and trade-related policies and measures. I also take note of, and I think we should be greatly encouraged by, the general commitment among Members to continue to improve their contribution to and participation in the trade monitoring exercise. I am looking forward to the analysis that would be implemented by the Secretariat with your support next year to improve further the mechanism and the context of the reviews.

141.  With these words, I hereby close the meeting.

__________