WTO Praises EU Stance On Trade

by Ulrika Lomas, Tax-News.com, Brussels

07 April 2009

The World Trade Organisation has praised the European Union for its role in strengthening the multilateral trading system and its leadership in the Doha Round of world trade talks.

In its 9th review of the EU's trade policy, the WTO highlighted the bloc's efforts to help integrate developing countries into the international trading system, recognised the progress made over the last two years in consolidating the EU's Internal Market, and noted the benefits of the EU's reformed Common Agricultural Policy.

The report also said that the EU has been a driving force in the Doha negotiations and in the process of integrating developing countries into the multilateral trading system through its negotiations for Economic Partnership Agreements with the ACP (Africa, Caribbean, Pacific) countries and the implementation of the reformed Generalised System of Preferences for developing countries.

Said a European Commission statement: "The EU has consistently argued that a swift, ambitious and balanced Doha Round outcome is the best way to prevent trade protectionism and boost the economy in the current economic downturn."

The statement added: "The EU is committed to keeping markets open and to fighting protectionism. The EU strongly supports the WTO initiative to report on trade related developments during the economic and financial crisis. It has actively contributed to this report, which aims at strengthening transparency in the WTO."

EU Trade Commissioner Catherine Ashton commented: "The European Union will continue to show leadership on global trade and stand firm against protectionism. We need this commitment more than ever to promote trade and overcome the economic downturn. We are committed to multilateralism, to transparency, and to open markets based on rules that benefit developed and developing countries alike."

The Trade Policy Review Mechanism is seen as the most important transparency exercise of the WTO. Its purpose is to contribute to improved adherence by all members to rules, disciplines and commitments made under the different WTO provisions and agreements. While not intended to serve as a basis for the enforcement of specific obligations, it is meant to provide for an overall assessment of the trade policy of the different WTO Members.

The four largest members in terms of trade volume are reviewed every two years; currently, these are the EU (last reviewed in February 2007), the US (last reviewed in June 2008), Japan (last reviewed in February 2009) and China (last reviewed in May 2008). The next 16 members are reviewed every four years, and the rest every six years; a longer period may be fixed for developing countries.

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