Trade Policy Review Body - Overview of developments international in the international trading environment - 11 December 2024 - Minutes of the meeting

OVERVIEW OF DEVELOPMENTS INTERNATIONAL IN
THE INTERNATIONAL TRADING ENVIRONMENT

MINUTES OF THE MEETING

11 December 2024

Chairperson: H.E. Dr. Adamu Mohammed ABDULHAMID (NIGERIA)

INTRODUCTORY REMARKS BY THE CHAIRPERSON

1._       Let me start by welcoming the Director-General and the DDG Hill and all the participants to this meeting of the Trade Policy Review Body which was announced by Convening Notice _WTO/AIR/TPR/170 on 20 November 2024. I am pleased to see so many of you here in person as well as online.

2._       The purpose of this meeting is for Members and Observers to undertake their annual overview of developments in the international trading environment which are having an impact on the multilateral trading system, as provided 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 provides a comprehensive overview of the overall state of global trade, of significant developments in the implementation of trade policies by WTO Members and Observers, and an update on several trade policy issues affecting the trading system for the period between mid‑October 2023 and mid-October 2024. The Report was circulated in document _WT/TPR/OV/27 on 20 November 2024.

4._       The Trade Monitoring Report makes it very clear that the principal purpose of the exercise is to further enhance transparency. It is intended to be purely factual and has no legal effect on the rights and obligations of WTO Members. I think it is important to emphasize that this even if you are all very familiar with the trade monitoring exercise.

5._       Allow me also to take a moment to recognize the work that has been undertaken to follow up on the important outcomes of the 7th Appraisal of the Trade Policy Review Mechanism concerning Trade Monitoring. First, to facilitate Members' participation in the exercise using IT and digital solutions, the Secretariat has continued to develop and implement the digital platform in the Trade Monitoring Database which allows delegations to submit and verify their trade measures. More and more delegations are using this platform, and of course, those that continue to do so. Second, this is the first year where the Trade Monitoring exercise applies to maintain a high level of engagement and participation, the Monitoring Exercise continues to regularly reach out to and invite delegations to submit their trade measures. To support this effort, and to further promote inclusiveness and transparency, you will be aware that a WTO Trade Monitoring Update was issued in early July this year as a preliminary stocktake to the Report before you today. Finally, the 7th Appraisal highlighted the need for the TPRB to serve as a forum for information-sharing on trade policies and practices and today's meeting is another opportunity to do so.

6._       The consensus outcomes of the 7th Appraisal, and the discussions that preceded them, recognize the value of the trade monitoring exercise, and demonstrate that Members place a premium on the ability of this non-legal peer-review to contribute to transparency and predictability in the multilateral trading system. I urge you to continue to support this exercise and collaborate with the Secretariat in making it as inclusive as possible.

7._       Now, I do not wish to go into detail with respect to the main substantive findings of the Report as I am sure you have already taken note of those. The Director-General will shortly provide you with her main takeaways. However, I believe we all recognize that the Report before you comes at a time of great uncertainty for the global economy in general, and international trade in particular. Geopolitical tensions and several conflicts are having specific and important ramifications for the flow of trade. This is worrying from both a systemic point of view, but equally importantly from the point of view of traders who face increasing uncertainty in their day-to-day operation.

8._       With these introductory remarks, I will now give the floor to the Director‑General to introduce her Report. Following this, I will invite delegations to share their views and comments. Madam Director-General, you have the floor.

INTRODUCTORY REMARKS BY THE DIRECTOR-GENERAL

9._       Thank you, Ambassador H.E. Dr. Adamu Mohammed ABDULHAMID (NIGERIA) for your introductory remarks.

10._    Excellencies, ladies, and gentlemen. I am pleased to join you today to discuss the latest WTO Trade Monitoring Report and take stock of recent trade policy developments.

11._    You all will have seen my Report which was circulated to Members on 20 November, in document _WT/TPR/OV/27 and its Addendum.

12._    You are all familiar with how the Report is prepared and our efforts to ensure inclusiveness and transparency in delivering this factual overview of trade policy developments over the past 12 months. The Trade Monitoring exercise is there to assist you, the Members, to get a sense of developments in the trading system that stand out, to understand emerging trends, and to undertake a constructive, non-legal peer review on matters of shared concern.

13._    You have seen the Report, so I will not list its findings - I am more interested in hearing what you have to say and listening to you engage on the substance of the trends and developments identified since October 2023. However, allow me to share with you a few of my main takeaways.

14._    Let's start by acknowledging something we all know and which the Chair, Ambassador Adamu just refer to: the global trading environment appears increasingly fragile, uncertain and precarious.

15._    But to clear, trade has shown resilience to all the shocks of recent years, to Members' benefit. I really do want to stress this, let's also remember that trade is showing quite a bit of resilience. In October, economists reported that the volume of world merchandise trade had expanded at a moderate 2.3% year-on-year pace in the first half of 2024, on track to grow by a projected 2.7% for 2024, and 3.0% in 2025. This represents an improvement over the 1.1% decline in merchandise trade volumes seen in 2023. And these projections are in line with the projections for global GDP growth. Normally trade grows faster feast into GDP, this time they are growing intended.

16._    Nevertheless, the resilience we have seen we had to admitted it looks fragile, amid geopolitical tensions increasing protectionism and the unilateral measures described in this Report. Conflict and climate change continue to cause human suffering, while disrupting trade and economic activity. And as the IMF recently observed, the trading system routinely gets blamed for trade imbalances that are largely the product of domestic macroeconomic forces within leading economies. In other words, in some big economies, we have a domestic consumption problem while in others we have an excessive problem. We need to investigate these issues and try to see how we can deal with them macroeconomically. Yet the fact is that trade remains an important part of the solution to the challenges of our time – from accelerating growth and job creation, to ensuring food security and tackling climate change. That is why we need to shore up the rules-based trading system – to reform and re-invent it to withstand the current pressures and keep delivering for people everywhere, and for the planet. This has consistently been my message to you, and it was at the core of what I said to G20 leaders in Brazil last month.

17._    Turning to the Report's findings, let me start with the good news, because it's too easy to overlook the fact that there are genuine positive developments. For instance, Members continue to introduce liberalizing measures. Trade-facilitating measures introduced during the 12 months leading up to the middle of October – measures such as tariff reductions, simplified import procedures, and the removal of quantitative restrictions – covered an estimated USD 1.4 trillion worth of traded goods. Moreover, that amount is up almost half a trillion dollars from the USD 977.2 billion covered by trade facilitating measures in the previous reporting period, from October 2022 to 2023. Another positive trend comes from services trade: the report finds that the majority of the 134 services-related measures introduced over the past year were trade facilitating.

18._    Now for the not-so-good news. The Report shows that during the 12 months leading up to mid-October, the value of trade covered by the 169 new restrictions was USD 888 billion. That's half a trillion dollars more than the value of trade covered by restrictions introduced in the preceding year, which was USD 337 billion.

19._    In addition, there is little meaningful roll-back of existing trade restrictions. That means the stockpile of trade restrictions continues to grow. As of mid-October 2024, the stockpile of import restrictions in force was affecting an estimated USD 2.94 trillion representing 11.8% of world imports. That too is half a trillion dollars more than the comparable figure from last year's report, which was USD 2.48 trillion or almost 10% of world imports.

20._    Export restrictions are also gaining momentum. In the 12 months leading up to mid-October, export-restricting measures covered almost USD 277 billion in traded goods – well above the USD 159 billion covered by such measures introduced during the previous reporting period. The accumulated stockpile of export restrictions since 2009 is estimated to affect 3.2% of world exports, worth about USD 786 billion). An important silver lining here is that our tracking of export restrictions on food, feed and fertilizers put in place since the start of the war in Ukraine in late February 2022 shows that these have decreased significantly, today covering an estimated trade value of USD 11.8 billion, down from USD 30 billion a year ago.

21._    The Report also describes the latest developments on issues including trade remedies, economic support measures, the phase-out of COVID-19 related measures and the increase in trade concerns reported across WTO committees.

22._    Before closing, allow me to also to reiterate that the Trade Monitoring Exercise is only as strong as Members want it to be. Your participation is crucial, and you recognized this at the 7th Appraisal of the TPRM last year. I thank all those that have participated and urge all delegations to help us strengthen this transparency exercise. As requested by you, efficiency, inclusivity, and transparency remain at the core of the WTO's trade monitoring work, and we will keep up our efforts to improve.

23._    I will be here for a little while and then unfortunately I have to leave but DDG Hill will be my eyes and ears and will be here until the end.

24._    Thank you.

STATEMENTS BY THE MEMBERS

UNITED STATES

25._    We thank the Secretariat and Director-General for the work that went into drafting the Report of the Overview of Developments in the International Trading Environment that was circulated in document _WT/TPR/OV/27 on 20 November 2024 and the Addendum.

26._    The United States and other Members have raised since 2022 that the report's invention and usage of the terms "trade facilitative" and "trade restrictive" as a problematic lens to analyze measures and global trading developments.

27._    We note the Secretariat has clarified trade remedies are a separate category that may be implemented in response to market distortions. We welcome this important distinction.

28._    However, we don't see value in having the Secretariat categorize trade-related measures into binary terms like "trade facilitative" or "trade restrictive", which can distort the intent and impact of individual policy measures and ignore their wider context.

29._    Furthermore, this analysis is misleading for the reader, who could easily take the terms to indicate the WTO's determination of value on what measures are "good" and "facilitative", or "bad" and "restrictive". A neutral and objective WTO Secretariat should not evaluate and frame Members' measures in this way, which strikes us as prejudicial to Members' exercise of their rights and obligations.

30._    It is the role of Members, working in various WTO committees and through TPRs, to monitor each other's trade measures and, when they deem appropriate, raise concerns. A neutral and objective WTO Secretariat should not be appearing to put its thumb on the scale to characterize Members' measures in positive or negative terms, or to suggest approval or disapproval of measures, particularly based on non-transparent criteria.

31._    We understand that the WTO made efforts to address some of these concerns by replacing the term "trade restrictive" with "other trade-related measures" when referring to measures referenced in the Annex. However, this effort created additional problems without resolving the issue. It's still very easy to draw the conclusion that those "other measures" are the "trade restrictive" ones referred to in the reporting.

32._    Further, it is now less clear to the reader what data and methodology the Secretariat has used to reach its conclusions on trade restrictive measures, and if this approach has been applied consistently across all Members included in the report.

33._    The terms "trade facilitative" and "trade restrictive" are not precise enough to describe commitments that Members have made in the WTO or measure global economic trends. We re‑iterate our concerns that this is too simple a lens to analyse world trade and appears to prejudice our exercise of our rights and obligations.

34._    It is useful to remind ourselves that in a Member-driven organization, a neutral and objective Secretariat is accountable to the Membership. Therefore, its approach to its work – including monitoring – must reflect Members' consensus.

35._    The United States has begun giving thought to a sensible way forward, and we intend to reach out to Members to discuss this issue further next year.

CHINA

36._    I would like to start by expressing gratitude to the Secretariat for preparing this comprehensive Report and DG for her profound remarks.

37._    China appreciates the Secretariat efforts in producing this well-crafted overview and analysis on global trade trends, leveraging its expertise. This Report is an important public good produced by the Secretariat. To some extent, it functions as a form of soft constraint, encouraging members to exercise restraint in implementing restrictive measures. These efforts should be valued through the active participation by Members in the reporting and verification processes. It is disappointing to witness a slight decline in Members' participation for this reporting period, comparing with the previous year, particularly the absence of a major trading Member in this important exercise.

38._    In this report, three trends warrant our attention. First, surge in the trade coverage for trade restrictive measures, which was increased from 337.1 billion to 887.7 billion — a 2.63 folds increase compared to a 1.47 folds increase in facilitating measures. The share of trade covered by import‑restrictive measures reached its highest level since 2020. Second, the trade coverage associated with national security considerations is estimated to be 79.6 billion. Though a fractional portion of world trade, yet not negligible. Third, trade between hypothetical trading blocs defined by the UN voting patterns, has grown 4% slower than within-bloc trade since early 2022. While there are no overt signs of fragmentation, these trends highlight the growing influence of geopolitical factors on economic and trade issues, diverging from the fundamental goals of trade — serving for people and promoting prosperity.

39._    In the reading of this report, it is also noticed that responses were given to Members' comments and suggestions raised in the last December meeting, including statistics on the Report downloads and visits to the monitoring database. This transparency is commendable. However, the Report notes that one topic was not substantively covered in the report as certain Member do not "wish" the Secretariat to do so. I am wondering how the criteria used in selecting coverage of this Report is set and whether accommodating the preference of certain Members reduce the transparency of this monitoring process.

40._    I also want to say a few words about support measures, where "industrial policies" and "industrial subsidies" are reported. While most Members recognized industrial policy as a crucial tool of economic growth, the definition and scope of industrial policies and subsidies are not yet clear within the framework of WTO discussions. While referencing research outcomes from other organizations, caution is essential. For example, applying the OECD concept of "below-market borrowing" to state enterprises requires careful consideration to avoid potential misinterpretations.

41._    That is why we always value deep discussion and dialogue among WTO Members. In fact, in times of difficulty, it is even more crucial for Members to engage in consultations and dialogue within the framework and platforms provided by the WTO. A strong and effective WTO cannot be demanded; it must be built through the collective efforts of its Members. Each Member has a responsibility to contribute to this shared endeavour, fostering an open, inclusive, and non‑discriminatory environment for economic cooperation.

EUROPEAN UNION

42._    Welcome back DG from your long trip. It's wonderful to have you back in our town. So thank you so much for being with us today.

43._    I'd like to first start by welcoming this report and by thanking the Secretariat for adjusting it after the review that we did 18 months ago so the reports now coming out once a year. There are increased use of digital tools and there's an effort to introduce metrics. I think all of those are positive developments so we want to thank you very much for that and I think as a general matter we very much support that trade monitoring is a core function of the Secretariat so we think that's very legitimate for you to go out and ask both governments, but also other public sources, for information that you need in order to give your assessment of the changes in the world's economy.

44._    And I agree, I think we would very much agree with the thrust of the report, which is that it's a mixed picture. So, on one side, globalization is still there, but on the other side, there are some first discernible trends, which, of course, if they continue, they can be quite significant over time, because we know that when there are shifts in trade patterns, you only see them very little at the beginning, but over time, as they compound, they can be quite significant. And this comes, I think, to the core of this report, for which I think we would very much suggest that we should have a working session, an informal working session to discuss really look at what this report should aim to do to be as informative as possible for Members, because there are two different things. One is the mechanics, the mechanistic assessment of restrictions which governments are adopting, and the other is research and other indicators that show that trade flows are changing the world's economy.

45._    You have on page 16 on your evidence of fragmentation, you have a first hint. But it's no more than a hint, because it's just one page, and it's one publication. But I think that's something we are very interested in. We are equally interested in a discussion in this Organization.

46._    I note the comments made by my colleague from China about how industrial policies impact the interests of other WTO Members, and how they can change the terms of trade between, in some cases, very large trading blocks.

47._    And you yourself, Director-General, just mentioned in your introductory comments the question of macroeconomic imbalances and the fact that there are some significantly large economies, and it could also be mine because we're a large economy, but that have significant trade surpluses or deficits, and that these are perceived to be a significant source of friction within the trading system, and we have to find answers how to manage those, and obviously there's a part of the response belongs in the financial community, in the IMF, and the secretaries and ministers of finance, and part of it is very much a trade issue, and it's our task really to think through how trade can contribute or trade rules to reduce those tensions over time, because that's what helps the durability of the trading system over time if it's perceived to be fair.

48._    And for us, what we've tried to say very much also to colleagues from developing countries is that if there is unfairness that is created in the very large economies, almost invisibly, it can have an immense effect on the development prospects of developing countries. And that's a responsibility for me, but in the equal vein, Chinese economy, the American economy, the large and increasingly wealthy economies have a responsibility to ensure that their industrial policies aren't impediments to the development of perhaps the less developed parts of the Organization.

49._    I'd just like to say a few comments on the mechanistic aspects, because I know they're quite hotly debated. A colleague from the US has just made a few comments, and it's very difficult to get this right. So I don't think we are – it's impossible to get it right. So you can work your whole life, and every year there will be somebody who will put his hand up and say, I don't agree with this characterization or that characterization, but I think that we could have a working meeting just go who went to see if we can establish at least a common set of parameters so that you don't have the controversy next year and that you can feel at ease when you are setting up your work.

50._    I would just give you one example with the problem of a overly mechanistic approach. It's a thousand days since the illegal evasion of Ukraine by the Russian Federation. We have very strong views in Europe on this, so I don't need to repeat that. But the report says that our trade facilitating measures as EU is one measure. And then we introduced, I think, three tariff quotas in agriculture, and they are three trade-restrictive measures. So you have one measure which opens up everything, if I understand well, and then you have three measures which restricts. But it's three against one, and it's very difficult to compare because, in fact, this is overwhelmingly a liberalizing policy that we have pursued, because we try in every way we can to support Ukraine in its struggle for justice.

51._    But I think I just want to conclude by thanking you and thanking the Secretariat for this work, because I know there's a lot of work that goes into it. And we are very happy to continue, again, developing the metrics better. I think there's a first, you've had a first go at it, but I think there's room for improvement also for comparing how much this report is looked at compared to the annual trade reports and to other reports that the WTO publishes so that in a few years time, we'll have a very good overview of which products the Secretariat makes are felt to be the most useful for stakeholders. And that's not just us as government representatives, but also the wider community.

52._    But thank you very much, and I look forward to working on this in the next weeks. Thank you.

JAPAN

53._    The Trade Policy Review Meeting and this monitoring are at the core of the WTO's monitoring function for Agreement implementation, which serves to enhance the transparency of measures taken by Members, and Japan appreciates the work of the Members and the Secretariat in contributing to the preparation of the WTO Trade Monitoring Report.

54._    This Report, which maintains basic neutrality and transparency and provides concise analyses and explanations based on material prepared under the responsibility of the Secretariat, with references to OECD and IMF reports, is useful for understanding the situation surrounding the policies implemented by Members.

55._    In order to further enrich this Report, the participation of more Members is essential. In this regard, it is very regrettable that the number of Members participating in the monitoring exercise has decreased each year since 2020. Japan hopes that more Members will participate in this exercise, and we are willing to consider ways to improve the situation together with other Members.

56._    This year's report reveals an increase in government industrial and other support policies against a backdrop of geopolitical tensions and frequent and escalating climate-related crises.

57._    During the period covered by the Report, the value of trade covered by both trade restrictive and trade facilitating measures has increased significantly compared to the previous report in December 2023, in particular the value of trade covered by trade restrictive measures, which has increased by about 2.6 times, according to the Report.

58._    We are closely monitoring the impact of these developments on trade, and Members are encouraged to do more to maintain and improve transparency in policymaking.

59._    On the other hand, the Report also points out that new opportunities are emerging in international trade and the global economy. As the WTO responds to today's international trade situation, there are some areas where updating the rules is desirable, such as investment facilitation and the digital sector. We would like to work with all Members to bring the IFDA and the E-commerce Agreement into the WTO rulebook.

60._    The multilateral trading system is an essential international public good that underpins the prosperity and stability of the international community. It is imperative that, through all discussions to address the concerns in this report and to respond to new opportunities, Members continue to collectively defend and promote the multilateral trading system with the WTO at its core.

61._    Regarding the Trade Policy Review meetings held this year in 2024, a total of 14 review meetings were held this year, during which trade- and investment-related measures of 14 countries were reviewed. In particular, four LDC Members - Angola, Malawi, Mozambique and the Solomon Islands - have been reviewed this year, bringing the total number of LDC Members reviewed to 33 out of a total of 37. We believe that TPR exercise is useful in assisting LDC Members to improve their understanding of the WTO agreements and to help them implement them. In this regard, we find it valuable that the Secretariat continues to provide technical assistance and capacity building to LDCs, including through workshops.

62._    Based on the agreement at the Seventh Appraisal of the TPRM, the frequency of monitoring reports has been reduced from twice a year to once a year from this year onwards, allowing us to analyse the general situation of the international trade environment over a longer period of one year. We therefore support the continuation of this practice.

63._    Regarding the procedure for the submission of advance written questions, Japan appreciates the ongoing efforts to introduce an online tool, which is expected to reduce the burden on the reviewed Member and the Secretariat and to further increase efficiency, thereby enhancing the substance of the question-and-answer procedure.

64._    Japan appreciates the role of the TPRB in contributing to greater transparency in world trade and in the trade policies and measures of Members and will continue to actively contribute to the TPR.

65._    Thank you.

DIRECTOR-GENERAL ADDITIONAL REMARKS

66._    Thank you very much, and I want to thank those Members who have made remarks, and we'll be looking now to see the opinions of others. I just wanted to say I'm very interested in your views because this monitoring exercise should be done with you, and as Japan remarked, the number of Members participating has been decreasing. Someone referred to the utility of the report and I want to reassure you that we have absolutely no interest in working on a report that is not useful or meaningful to Members. We want it to be meaningful. We want you to engage. We want it to be a useful report. I thank the EU for recognizing that based on your remarks last year, which I remember very well, we have tried to change and improve the report. We lowered the frequency, and we tried to consider all the other suggestions. As the EU mentioned, it's never perfect, but we tried and we are very open to listening to your suggestions, to listening to whether you want the report done at all or not. I strongly support the idea of an informal workshop or an informal consultation to try to discuss some of these issues. This should help us provide the report with the appropriate backing and deal with any controversies therein. And decide what we want to go ahead with every Member supporting. That's what I would really like to see. And in that regard, I want us to consider carefully the issue of the neutrality of the Secretariat. I wish to say a strong word on that. I know when there's a little bit of dissension or discomfort, the Secretariat bears the brunt, and we have big broad shoulders. But I also want to assure you that we do our very best. We do not gain anything from it not being neutral. So we try to report in with that in mind. I agree and would also like to express my strong support for looking at the definitions. Yet, we should avoid politicising the report and I believe very strongly in this.

67._    I want to be very frank with you. Sometimes when outsiders look at our reports, they question out figures because Members insist on the Secretariat not covering several issues. And we end up compromising in so many areas that impact numbers. Some scholars are doing similar work and their definitions are broadly accepted. I wish to reiterate that we are ready and willing to look at the reports and explore ideas and suggestions. At the same time, if we continue with a situation where we try too hard, the utility of the report is also called into question.

68._    Because others out there may be looking like they have more of the truth. They can also go to websites and other places and gather the information and make the report. But we're here to serve you Members. But let the WTO Secretariat serve you in a way that provides you with a meaningful report. And this is why I strongly support the suggestion of and informal working group or consultation where we could address issues with respect to the terms used in the reports. We have a trade facilitation agreement and we must have a good idea of what trade facilitation means when we concluded that agreement. We have trade-restrictive measures, new concerns and the fact that 21st century issues are now on the table. We should discuss and address these issues, but we should also avoid politicising the report so that we can keep it balanced and as neutral as possible.

69._    The comment on the research, what is the objective? Is it to share some research? Is it monitoring? We can also listen to you and see the balance you want in the report, and we are willing to share that we have lots of good information we can share if Members are interested in that direction. In other words, we will depend on you. I will end on the note of encouraging you all to pursue this consultation or workshop so we can sort out what we want the report to focus on so that it is useful and meaningful to Members. I will be very interested in the outcome.

70._    Thank you, Chair.

CANADA

71._    Thank you, Chair, and thank you, DG, and DDG Hill, and thank you very much to the Secretariat for your very hard work in putting together this report. I'll be very brief. I just wanted to say, add my voice to discussion to say that we of course feel that the monitoring and transparency function of the WTO is extremely valuable and that we agree sometimes there is scope for improvement as with many things and that we're happy to participate constructively in any discussions that may be held in this regard.

HONG KONG, CHINA

72._    Thank you Chair and good afternoon colleagues. Hong Kong, China would like to thank the DG and her team for compiling the Annual Overview, which provides very useful information at a time when the global economy is grappling with growing uncertainties due to geo-economic fragmentation, slower economic growth, and climate change-related crises. The report offers timely updates on the latest developments in the implementation of trade policy measures and the state of the international trading environment, making a valuable contribution to enhancing transparency of the multilateral trading system. Just some quick observations from us:

·_              First, while the gradual recovery in goods trade is encouraging, we are mindful that less developed regions are likely to be the most vulnerable to potential challenges in pursing economic development. We hope that all WTO Members could work collaboratively to promote inclusive and sustainable economic growth.

·_              Second, the significant increase in the coverage of import-restrictive measures introduced during the review period is also quite alarming. We remain concerned about the growing stockpile of import restrictions in force, which has continued to expand steadily since 2009 both in value terms and as a percentage of world imports. We urge WTO Members to refrain from introducing new trade-restrictive measures and critically review the necessity of existing ones and to repeal them once circumstances no longer warrant their continuation.

·_              Third, during the review period, we note that the average number of trade remedy initiations was 28.2 per month, up from 16.7 in the last report, though still lower than the peak in 2020 (36.1). The monthly average of trade remedy terminations recorded was 9.3, the lowest average since 2015. We call on WTO members to exercise caution and restraint when considering the use of trade remedy actions so as to avoid creating unnecessary restrictions to trade.

·_              Finally, we note that 76 Members, representing 45.8% of the WTO membership, replied to the DG's initial request for information on measures taken during the review period and requests for verification. This is a slightly lower response rate as compared to the last annual report and we would like to echo our Japanese colleagues and urge more WTO Members to actively participate in this meaningful exercise to enhance transparency and predictability of trade policy development.

73._    Thank you Chair.

RUSSIAN FEDERATION

74._    Your Excellency, the Russian Federation is very welcome the decision of the seventh appraisal of the Trade Policy Review Mechanism to reduce the frequency of the Monitoring Reports. This decision allows us to make a more balanced look at trends and challenges in the global trade.

75._    We are also appreciate the work that the Secretariat has done in analyzing trade measures taken by Members states and tendencies in the world trade. We welcome the Secretariat view that the unilateral restrictions create greater uncertainty for the global economy.

76._    At the same time, we would like to add that not only these measures contribute to the expansion of crises. We underline that policies of some Members such as reckless monetary policies, imbalanced green policies as well as other measures affecting price spikes in primary commodities, food security and rising energy prices were given disproportionately less consideration like in the previous reports.

77._    We believe that the Secretariat should continue to contribute to the de-politicization of the WTO by demonstrating its objectivity and impartiality in the performance of its functions, including in the preparation of analytics.

78._    Thank you.

UKRAINE

79._    Mr. Chair, Ukraine takes note of the Annual Overview Report as contained in document _WT/TPR/OV/27. This report confirms once again the negative impact of the Russian Federation's war of aggression against Ukraine on the international trade. We encourage the WTO Secretariat to further monitor impact of the Russian Federation's armed invasion of Ukraine on international trade and particularly on world food security.

80._    The Russian Federation continues to destroy intentionally the critical civilian infrastructure of Ukraine, thus endangering the international trade for my country and for our trading partners, first of all in agricultural products. The Overview Report elaborates on Russian fertilizers but does not mention that at least 6 million tonnes of Ukrainian grain was stolen by the Russian Federation since its invasion. Russia continues to drain the resources of the temporarily occupied Ukrainian territories with the use of complex smuggling operations. This includes blending the stolen Ukrainian grain with other shipments, engaging in illegal exports under falsified phytosanitary certificates, and hiding vessels' data. Russia profits from such marauding under the guise of supporting global consumers. The use by Russia of food as a blackmailing tool should be condemned

81._    With regard to the Overview Report itself, as we indicated several times before, we would like again to draw the Members' and Secretariat's attention to the repeated attempts to call Russia's full‑scale armed invasion of Ukraine "a war in Ukraine" or "a conflict in Ukraine". This factually is not correct and does not correspond to reality. Such language fails to reflect objectively what is the root cause of the disruptions in Ukraine's trade. Such language discourages from participating in the overview. The only reason of the current state of Ukraine's economy and trade is the ongoing war of aggression of the Russian Federation against my country, which continues for the third year.

82._    The Director‑General has appealed not to politicize the overview process. In this regard the WTO Secretariat could use the internationally recognized and adopted qualification of what the Russian Federation has been doing in Ukraine since 2014 as contained in numerous resolutions of the United Nations General Assembly. We hope that this and any future Annual Overview Report will be corrected respectively to factually reflect the illegal actions of one WTO Member against another WTO Member.

83._    Thank you.

CAMBODIA

84._    Thank you Chair for the floor and DG for her insightful remarks and encouragement.

85._    Like other delegates, we would like to extend our appreciation to the Secretariat for their diligent efforts in compiling the Annual Report on Developments in the International Trading Environment. The comprehensive review and transparency efforts embodied in this report are invaluable in fostering informed dialogue among WTO Members.

86._    We welcome the insights shared in the Report, especially the focus on measures that facilitate trade and the progressive steps taken by Members in support of a sustainable and resilient trading system. Initiatives such as the reduction of import tariffs, the simplification of procedures, and the phased withdrawal of pandemic-related restrictions highlight a collective commitment to enhancing global trade dynamics.

87._    We note that the report underscores challenges such as increasing trade restrictions, rising geopolitical tensions, and evidence of trade fragmentation. These developments pose risks to the multilateral trading system, emphasizing the need for reinforced collaboration among Members. Furthermore, the continued growth in trade remedy measures signals a pressing need to address underlying tensions through transparent and rule-based approaches.

88._    Cambodia reaffirms its steadfast commitment to the principles of transparency and inclusivity as fundamental pillars of the multilateral trading system. We are dedicated to fulfilling our obligations under WTO agreements and contributing to the collective goal of a stable and equitable global trading environment.

89._    Moving forward, to advance these objectives, we hope to:

·_              First, enhanced transparency mechanisms: encourage Members to actively utilize and improve the WTO's trade monitoring and reporting tools, fostering greater accountability and understanding of trade measures.

·_              Second, addressing trade fragmentation: strengthen cooperation to counter trade fragmentation trends by promoting inclusive trade partnerships and fostering dialogue on emerging concerns.

·_              Third, focus on capacity building: enhance technical assistance and capacity-building efforts to enable developing and LDC Members to adapt to evolving trade practices and leverage opportunities.

·_              Last but not least, the support from WTO Members on the smooth transition measures in favour of countries graduating from the LDC category are essential. These will help to address the structural vulnerabilities of graduating countries and safeguard their development trajectory during that critical phase.

·_              To conclude Chair, Cambodia remains committed to actively engaging with WTO Members to overcome challenges and maximize opportunities for a balanced and inclusive trading system.

90._    Thank you, Chair.

ADDITIONAL REMARKS BY DELEGATIONS

UNITED STATES

91._    We would like to thank everyone for the insights, and I also wanted to thank the WTO and the Director General again for their hard work on this. Additionally, we support the working groups with Members to further discuss the scope and methodology of the reporting. We also support the intervention from the Ukrainian delegate and have made similar points since 2022 and we look forward to more balance reporting on this issue in future reports.

92._    Thank you so much.

UNITED KINGDOM

93._    Thank you, Chair. And we'd also like to thank the Secretariat for the report on the monitoring exercise. And like Canada, we'd be willing to participate in any informal discussions that take place on this. We would also like to thank Ukraine for their statement and the points that they made in relation to Russia's illegal and full-scale invasion of Ukraine, and hope that these are taken on board.

94._    Thank you very much.

RUSSIAN FEDERATION

95._    Thank you, Chair, I have to take floor again, just to comment on issues raised today. We strongly reject any reference to the UN document and its content. The WTO is not in part of the UN system.

96._    Thank you.

CANADA

97._    Thank you Chair, my apologies for taking the floor again, I just wanted to add my voice in support of Ukraine's statement.

JAPAN

98._    Japan would like to echo the EU and Canada regarding the support for Ukraine.

99._    Thank you.

DEPUTY DIRECTOR-GENERAL HILL'S CLOSING REMARKS

100._  Thank you for giving me the floor, Chair.

101._  This has been an invaluable opportunity to take stock of recent trade policy developments with you, and to hear delegations' comments and considerations regarding the Report.

102._  I would like to sincerely thank the delegations for their participation in today's discussion and concrete contributions towards the Report.

103._  Members have established trade monitoring as one of the core functions of the WTO and transparency as one of the pillars of a well-functioning multilateral trading system. Their value becomes even more evident during periods of economic uncertainty, as the experience of the COVID‑19 pandemic taught us.

104._  From today's discussion, it is evident that delegations broadly share the concerns highlighted in the report regarding the global economic outlook overall, and international trade in particular. And in this context, many of you have expressed support for the facts and transparency provided by the trade monitoring exercise.

105._  Indeed, your support and active engagement are central to the effective and meaningful trade monitoring exercise. Members' timely contributions are crucial for preparing factually accurate up‑todate reports. This, in turn, not only further strengthens the trade monitoring process, but also deepens the constructive stakeholder relationship between Members and the Secretariat.

106._  I also wish to assure you that we have taken careful note of all the comments made today. I will convey the last ones to the Director-General, but she had stayed here for more interventions, and you can see as a Secretariat, we will continue building on the valuable inputs you have given in the past and today and reflect on how to further improve and streamline the trade monitoring exercise as we move forward, taking into consideration of course of all the concrete suggestions made today.

107._  I just wanted to thankyou the Chair, for the opportunity.

CHAIRPERSON'S CLOSING REMARKS

108._  Thank you, DDG Hill, for those observations.

109._  I think we have had a constructive and efficient meeting.

110._  I have taken good note of your interventions and suggestions. As you know, last year's Appraisal in document _WT/TPR/500 contains an explicit reference to the understanding among Members that the TPRB can address and decide on specific items for improvement during the period before the next Appraisal which Members agreed should take place no later than 2027. In this respect, and taking into account your comments today, I will consult with delegations in the weeks to come on how we might approach this in the most appropriate and constructive manner.

111._  Finally, allow me just to make a brief remark on the participation in this Report. The ability of the monitoring exercise to deliver factual and up-to-date information depends, to a very large extent, on the input of Members, in terms of providing and verifying information which can often only be obtained from you, the Members. Overall, the Secretariat receives good cooperation from a large number of delegations. However, some regions remain chronically underrepresented in the provision of requested information.

112._  For the current Report, there was a participation rate of under 50% of the membership, representing approximately 77% of world imports. This is, frankly, too low a participation rate given how important transparency and predictability are for policymakers and business alike.

113._  In other words, there is room for improvement, and I urge you to redouble your efforts to participate and assist the Secretariat in ensuring the high quality and accuracy of the Monitoring Reports.

114._  Before I close the meeting, I would like to remind you that the next TPRB meeting will take place the day after tomorrow, on 13 December 2024, with the second day of the TPR of the Solomon Islands. I look forward to seeing you again then and I wish you all a very good evening.

115._  I hereby call this meeting closed. Thank you for your participation.

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