EU Statements at the Regular DSB meeting of 30 May 2023

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EU Statements at the Regular DSB meeting of 30 May 2023

30.05.2023 EU mission to the WTO in Geneva - Press and information team

EU Statements delivered by Mr. Davide Grespan, Minister-Counsellor

AGENDA POINT 1: SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

B. UNITED STATES - SECTION 110(5) OF THE US COPYRIGHT ACT: STATUS REPORT BY THE UNITED STATES (WT/DS160/24/ADD.214)

• We thank the United States for its status report and its statement today.

• We refer to our previous statements. We would like to resolve this case as soon as possible.

AGENDA POINT 1: SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

C. EUROPEAN COMMUNITIES - MEASURES AFFECTING THE APPROVAL AND MARKETING OF BIOTECH PRODUCTS: STATUS REPORT BY THE EUROPEAN UNION (WT/DS291/37/ADD.177)

• We recall that the EU approval system is not covered by the DSB's recommendations and rulings.

• The EU continues to propose for vote authorisations for genetically modified organisms that, in the European Food Safety Authority's risk assessment, have been concluded to be safe.

• On 31 March 2023, the Commission presented to the Standing Committee three draft decisions authorising the placing on the market of GM maize[1] and 3 decisions renewing the authorisation for placing on the market of GM soybeans[2].The votes resulted in 'no opinion'. The six draft decisions were referred to the Appeal Committee held on 11 May 2023. The votes in the Appeal Committee resulted in 'no opinion' and it is now for the Commission to decide on these authorisations.

AGENDA POINT 2: TURKEY - CERTAIN MEASURES CONCERNING THE PRODUCTION, IMPORTATION AND MARKETING OF PHARMACEUTICAL PRODUCTS (DS583) - Implementation of the Recommendations of the Award of the Arbitrators - Statement by the European Union

• Under this agenda item, the European Union would like to comment on the status report circulated by Türkiye in this dispute.

• Türkiye claims that the actions it describes in the Status Report "bring it into compliance with the arbitration award".

• The EU appreciates Türkiye'sefforts towards implementation. However, the European Union does not agree that these actions amount to full compliance. The EU has several concerns, both with regard to the nature of the measures taken and with regard to their substance. While the EU will further study the recent measures by Türkiye and assess the situation in more detail, we would like to comment on the nature of the compliance measures.

• Two of the actions that Türkiye mentions in the Status Report were still draft measures and had not been adopted at the time of the circulation of the Status Report. Türkiye had also not provided the EU with all the drafts and had not given the EU any indication of the timing of their entry into force. In the meantime the Alternative Drug Reimbursement Regulation has been published in the Official Gazette and that is a welcome development.

• In its Status Report, Türkiye also refers to the December 2022 Health Industries Steering Committee Recommendation to initiate the application process for relevant pharmaceutical companies regarding the re-activation of their products in the reimbursement system and the January 2023 Health Services Pricing Committee adoption of the afore-mentioned recommendation as measures taken to implement the recommendations of the Panel and of the Arbitrators. These measures have not been made public and they have not even been shared with the EU, despite requests from the EU for copies of such measures.

• In light of the above, and the need to further study the measures and monitor their application, the European Union cannot agree, at this point, that Türkiyehas fully compliedwith the recommendations of the Arbitrators. The European Union will continue monitoring the situation and urges Türkiye to ensure full compliance. The European Union reserves its rights to take further steps under the DSU.

AGENDA POINT 3: EUROPEAN UNION - COUNTERVAILING AND ANTI-DUMPING DUTIES ON STAINLESS STEEL COLD-ROLLED FLAT PRODUCTS FROM INDONESIA

1. REQUEST FOR THE ESTABLISHMENT OF A PANEL BY INDONESIA (WT/DS616/2)

• The European Union regrets Indonesia's decision to request a WTO panel on Countervailing and Anti-Dumping Duties on Stainless Steel Cold-Rolled Flat Products from Indonesia.

• Indonesia is of course entitled to bring this matter to dispute settlement in the WTO, but the European Union firmly believes that the measures at stake are fully justified.

• For these reasons, the European Union is confident that it will prevail in this dispute, and that its measures will be declared in line with WTO law.

• The EU stands ready to discuss with Indonesia reciprocal interim arrangements that would preserve the availability of appeal review in this and other disputes on the basis of Article 25 of the DSU, as long as the Appellate Body is not functioning, such as through the Multi-party interim appeal arbitration arrangement (known as the MPIA).

AGENDA POINT 5: STATEMENT BY JAPAN REGARDING THE PANEL REPORT IN THE DISPUTE : "INDIA - TARIFF TREATMENT ON CERTAIN GOODS" (DS584)

• The EU acknowledges and welcomes the findings and recommendations of the panel in this case, which are very clear.

• The EU also takes note that the panel report has been appealed by India but that this appeal cannot be currently heard by the Appellate Body, given that it cannot function. Appeal is a right under the DSU, but its exercise amounts to effectively blocking this dispute in the current circumstances, unless the parties are ready to find an arrangement that allows the appeal to be heard, such as through appeal arbitration procedures.

• This is why the EU encourages all parties to find a solution that preserves the rights of both the complainant and the respondent under the DSU, such as the MPIA.

• The EU reserves its rights in its own dispute (DS582).

AGENDA POINT 7: DISCUSSIONS CONCERNING DS REFORM

• The European Union appreciates the opportunity to address, in the Dispute Settlement Body, the ongoing discussions on dispute settlement reform.
• For the European Union a well and fully functioning dispute settlement system in the WTO is a key priority. The EU agrees that a meaningful reform is needed in order to achieve this objective. We support a reform that preserves the core features of the dispute settlement system.
• We treat very seriously the commitment made at MC12 "to conduct discussions with the view to having a fully and well-functioning dispute settlement system accessible to all Members by 2024". It is with that objective in mind, and in a constructive spirit, that we have been engaging in the discussions on dispute settlement reform for more than a year now.
• We thank Mr. Marco Molina for the explanations provided today and for its continuous engagement.
• While the work is challenging, the EU fully supports the ambitious schedule for the discussions, as set out by Mr Molina. If we are to have a fully functioning dispute settlement system "by 2024", these discussions must pave the way for agreement on dispute settlement reform at MC13.
• Finally, we wish to underscore that these discussions, pursuant to the MC12 outcome document, are open to all Members, and the EU indeed appreciates the efforts to ensure that the process is transparent and inclusive. We value the broad participation in the meetings which contributes to the quality of the exchanges, and enhances the understanding of the positions of Members on particular issues. We also welcome the reporting to the DSB, as it is the case today, which enhances the transparency and accountability of the process.

AGENDA POINT 8: APPELLATE BODY APPOINTMENTS

• The European Union refers to its previous statements on this issue and thanks all Members who have co-sponsored the proposal to launch the appointment processes.

• Since 11 December 2019, the WTO no longer guarantees access to a binding, two-tier, independent and impartial resolution of trade disputes.

• A fully functioning WTO dispute settlement system is crucial. That is evidenced by the large number of Members co-sponsoring the present proposal.

• We believe that restoring a fully functioning dispute settlement system and appointing Members of the Appellate Body is a key priority. This task is a shared responsibility of WTO Members.

• In order to achieve this objective, the EU agrees that a meaningful reform is needed.

• We support a reform that preserves the core features of the dispute settlement system.

• As mentioned in the previous agenda item, we treat very seriously the commitment, made at MC12, of having a fully functioning system by 2024 and we are committed to continuing to work towards meeting that goal.

• In the meantime, we are concerned with the impact that the absence of a fully functioning dispute settlement system is having on the international trading order. In that context, the MPIA has been put in place as an interim arrangement to preserve a fully functioning dispute settlement system among its participants and to support rules based trade. The MPIA is open to any WTO Member, and we invite any WTO Member to join as long as a solution to this impasse has not been found.

Re Ukraine/Russia:

• The European Union reiterates its resolute condemnation of the Russian Federation's war of aggression against Ukraine, which deliberately violates the UN Charter and disregards the rules-based international order. It undermines international security and stability and has no place in the 21st century.

• The European Union's support for Ukraine's independence, sovereignty, territorial integrity and right of self-defence is unwavering.

• We call on the Russian Federation to stop its acts of aggression and withdraw its troops from Ukraine. Russia must cease actions endangering the civilians and respect international humanitarian law.

• The European Union is firmly committed to ensuring full accountability for war crimes and other crimes committee against Ukraine and its people.

([1]) GM maize MON 87429, MON 95379 and DP4114 x MON89034 x MON87411 x DAS-40278-9 and its subcombinations

([2]) GM maize MON 87429, MON 95379 and DP4114 x MON89034 x MON87411 x DAS-40278-9 and its subcombinations