The EU27 trade ministers will meet in Brussels on 25 November to discuss the reform of the World Trade Organization (WTO), the relationship with the US and support for Ukraine in relation to trade.
The second of these will be the highest profile issue for the Member States, because of the United States’ problematic Inflation Reduction Act (IRA). Trade ministers already discussed this matter in Prague in October (see EUROPE 13054/2). On this occasion, the European Commission will inform them about the work done within the IRA ‘task force’ (see EUROPE 13051/26).
Three European sources indicate that the first three meetings between the EU and the US through the task force have not led to satisfactory results (see EUROPE 13069/24).
France and Germany have repeatedly raised the idea of replicating this with a similar system of aid for European producers.
The EU would ideally like to avoid this, partly because it could risk contravening WTO rules on subsidies, and partly because the money for such a project has to be found, says a European source: “We think that the task force should be given a chance first”.
The question of response measures involving the EU’s trade defence tools, or recourse to the WTO, is also in the air, but the deadline for decisions is more or less 1 January, when the IRA comes into force in the US. In the meantime, the EU wants to try to reach a negotiated solution with Washington.
Aid to Ukraine
The ministers will also discuss interim trade liberalisation measures with Ukraine. In June, the EU suspended existing tariffs and quotas on Ukrainian imports for one year (see EUROPE 12965/11).
“It is high time to point the way follow to extend the liberalisation regime”, according to a senior European official. Member States seem to be in favour of extending the measure.
WTO reform
A number of WTO-related issues will be on the ministers’ agenda, including priorities ahead of the 13th Ministerial Conference (MC13). The date and venue of this meeting have not yet been decided and the likelihood of it being held before the end of 2023 seems to be receding, a European source told EUROPE.
Ministers are expected to discuss in more detail their expectations for the reform of the WTO, and its dispute settlement system in particular. The initiative proposed by the EU to create a coalition of trade ministers on climate will also be discussed on Friday (see EUROPE 12970/15).
Finally, the lunch will be an opportunity for European Trade Commissioner Valdis Dombrovskis to update Member States on ongoing negotiations on trade agreements. Ministers are particularly interested in hearing the latest news on the forthcoming agreement with Chile. (Original version in French by Léa Marchal)