The WTO addresses trade tensions and 36 concerns at the Goods Council.

 

The session also addressed improving the functioning of the Council and a request for exemption from United States, among other issues crucial to the stability of the multilateral trading system.

 

During the meeting, Members reviewed 36 pre-existing trade concerns and one new concern raised by Australia, related to the certification process of the India for cotton bales. The Republic of Korea He also requested to discuss the safeguard measure of the United Kingdom on certain steel products.

 

The concerns addressed reflect the complexity of international trade, covering a wide range of measures such as non-tariff barriers, environmental policies, import and export taxes, restrictions, national security measures, halal certification, subsidy programs, export controls, sanitary and phytosanitary measures (SPS measures), discriminatory internal taxes, administrative procedures, and reciprocal tariffs.

 

These issues impact diverse sectors, from agriculture and semiconductors to shipbuilding and specific products such as critical minerals, electric vehicles and batteries, spirits, as well as food products such as apples, pears, cheese, legumes, cosmetics, and tires.

 

 

The concerns addressed reflect the complexity of international trade

 

 

Current Trade Tensions: US Section 232 at the Center of the Debate

 

A high point of the meeting was the discussion on current trade tensions, particularly the tariff measures imposed by the United States under Section 232 of its national security law. The United States reiterated that these tariffs are based on an essential security exception under Article XXI of the GATT 1994, arguing that they are not safeguard measures and therefore the suspension of concessions under the WTO Agreement on Safeguards not applicable.

 

However, the European Union, India, Japan and the United Kingdom They expressed their disagreement, stating that the US measures have safeguard characteristics and, consequently, they reserve the right to suspend concessions, without prejudice to ongoing negotiations.

 

Canada, the European Union and Norway lamented the fragmentation of world trade., attributing it to tariffs and the resulting global costs. They emphasized that recent U.S. tariffs are seriously disrupting trade and undermining the predictability of the international system, generating increased economic costs for consumers and businesses globally. While expressing support for the multilateral trading system centered on the WTO, they recognized the urgency of reforming the organization to reflect current economic realities.

 

Thirteen other members, including the United States, intervened in the debate, with the U.S. criticizing the trading system's failure to address imbalances and non-trade policies and urging WTO reform based on fairness and reciprocity.

 

Towards a More Effective CCM: Proposals for Improvement and Transparency

 

Ambassador Gustavo Nerio Lunazzi (Argentina), President of the CCM, presented a report on consultations to improve the functioning of the Council. Among the recommendations were the need to enhance the value of debates on trade concerns, focusing on political aspects and avoiding the repetition of technical issues. It was proposed to foster bilateral collaboration and improve transparency through digital tools, more effective notifications, and regular reporting.

 

The Chair suggested continuing discussions at an informal meeting in September to further explore these ideas. Ten members supported the report and suggestions.

 

In a positive development, the CTG adopted a decision on the registration of trade concerns, drawing on the practices of the WTO's Sanitary and Phytosanitary Measures (SPS) and Technical Barriers to Trade (TBT) Committees. Three members praised this decision as a step toward greater efficiency.

 

Caribbean Basin Economic Recovery Act: Next Stop at the General Council

 

Finally, Members considered a request from the United States for a waiver from WTO rules on trade preferences under the Caribbean Basin Economic Recovery Act. The United States emphasized that this waiver is similar to one approved in 2019 and seeks to promote economic opportunity and growth in the Caribbean region.

 

Several Caribbean members encouraged favorable consideration of the request. The CCM agreed to forward the draft decision to the General Council for consideration at its next meeting.