Opening remarks by Executive Vice-President Dombrovskis at the informal Foreign Affairs Council trade press conference

Opening remarks by Executive Vice-President Dombrovskis

Thank you, Minister.

Let me begin with the discussion we had on the preparations for the WTO Ministerial MC13.

With less than 5 weeks till the opening of MC13, we are entering the final stretch of discussions on the key files. We have already engaged intensively and will do so right up until the Ministerial in Abu Dhabi.

We had a useful exchange with the WTO Director General Dr. Ngozi Okonjo-Iweala yesterday.

The EU has fundamental strategic interest in a strong and reformed WTO which can effectively respond to the trade challenges and issues of the 21st century. The existing WTO rules, which still govern the majority of global trade, are our best guardrail against global economic fragmentation.

The WTO must remain fit for purpose, so we need to build on the WTO reform efforts launched at MC12.

First: reform of the dispute settlement system. This is critical for the overall legitimacy of the WTO and is necessary to stop the further erosion of trade rules. It also provides the stability for companies to be able to invest and export. We expect MC13 to deliver Dispute Settlement reform or, at the very least, bring us closer to that objective and offer a clear perspective for finding a solution.

Second, we must revitalise the WTO negotiating function to ensure the WTO rulebook is up-to-date both through new multilateral agreements and also through flexible, plurilateral agreements. This would mean we can better tackle key issues, such as the green and digital transitions. Related to those, let me flag two outcomes we need at MC13: extending the moratorium on e-commerce – vital for our businesses and the global economy - and an agreement on the second phase of fisheries subsidies. A deal that protects our oceans while also upholding EU interests will be challenging but it is possible.

The WTO must also offer space for members to address new global trade challenges. Key issues include the nexus between trade and industrial policy and state intervention of the economy; and trade and the environment. This is what concerns the WTO's deliberative function.

We also took a broader look at EU trade policy with a discussion on Open Strategic Autonomy.

The concept of Open Strategic Autonomy has been guiding our actions for trade policy for most of this mandate. This means focusing on an open economy, working cooperatively with others, and strengthening our internal capacities to deal with emerging challenges.

But this principle has been put to the test by numerous geopolitical, economic, and climate-related challenges over the past years. Be they Covid-19, Russia's invasion of Ukraine, or increasing US-China tensions.

At a time of geo-economic fragmentation, we run the risk of falling short of our economic ambitions and our sustainability and geopolitical ones.

Tomorrow we will present a package of proposals on Economic Security. This puts flesh on the bone to the Economic Security Strategy we launched in June. We need to reconcile open trade with our security imperatives.

Trade policy more generally has a big role to play here, helping us to boost economic competitiveness through better access to markets and critical inputs, contributing to supply chain resilience through more diverse sources of supply, and strengthening our geopolitical presence through active engagement with our trade partners.

Indeed, a clear example of the geopolitical role our trade policy can play is our programme to support Ukraine in the face of Russia's unprovoked invasion. EU measures to facilitate Ukrainian goods exports to the EU, and Ukrainian agricultural exports to the world, have played a vital role in keeping Ukraine's economy going, while 12 rounds of sanctions against Russia have been instrumental in making Russia feel the consequences of its aggression.

The importance of trade policy is reflected in our strong position in world trade. The EU is the biggest global trade actor, exporting over €3.1 trillion in goods and services and importing €2.8 trillion. Over the past ten years, the EU has also been the main trade partner in Asia, Africa and the Neighbourhood region, and remains the largest trade partner for the US. Here in the EU, our exports support 38 million jobs, with 1 in 5 jobs in the EU depending on exports.

We will continue to use our trade policy tools effectively across the board:

We have recently concluded five trade negotiations: free trade agreements with New Zealand, Chile and Kenya, our first ever Sustainable Investment Facilitation Agreement (SIFA) with Angola, and an agreement with Japan on data flows.

We are negotiating further agreements with India, Indonesia, Australia, Mercosur, Thailand and others.

Indeed, a conclusion of negotiations with Mercosur is within reach before the end of this mandate. We work to seize this opportunity, which is of major geopolitical importance.

We are also using other flexible forms of engagement, such as the Trade and Technology Council with the US and India, and negotiations on Digital Trade Agreements with South Korea and Singapore.

Finally, we continue with assertive implementation and enforcement, including making use of our autonomous tools.

Media