WTO Council for Trade in Goods Reviews Key Tariff Disputes and Elects New Chair

Members reviewed a total of 35 STCs, with the newly introduced concerns touching on regulatory proposals, market access limitations, and reciprocal tariff measures.

The World Trade Organization’s (WTO) Council for Trade in Goods (CTG) convened for a two-day meeting in Geneva, during which WTO members addressed a broad range of trade-related issues. Over 30 specific trade concerns (STCs) were discussed, including four new items raised for the first time, many of which centered on contentious tariff and regulatory measures. The meeting also saw the election of Mr. Gustavo Nerio Lunazzi of Argentina as the new CTG Chair for the upcoming work year, succeeding Ambassador Clare Kelly of New Zealand.

Trade Concerns in Focus

Members reviewed a total of 35 STCs, with the newly introduced concerns touching on regulatory proposals, market access limitations, and reciprocal tariff measures. These new issues, presented in alphabetical order by country, were as follows:

1. European Union – Proposal on Fluorinated Greenhouse Gases (F-gas)

The United States and Japan voiced concerns about the European Union’s proposed regulation to amend its existing F-gas directive. They highlighted potential trade implications for sectors relying on these substances, particularly in refrigeration and industrial applications. Both nations called for greater transparency and consideration of WTO obligations in environmental policymaking.

2. India – Trade Measures Potentially Restrictive in Nature

Thailand raised concerns about delays in the issuance of standard marks and import licenses by India. These measures, affecting items such as wood-based panels and viscose fibres, were said to act as de facto quantitative restrictions, potentially breaching WTO market access commitments.

3. Philippines – Proposed Export Restrictions on Raw Minerals

Japan and the United Kingdom raised alarms over a Philippine Senate bill that would restrict the export of raw mineral materials. The countries emphasized that such a move could hinder global supply chains and distort international trade, particularly in the critical minerals sector vital for technology and clean energy industries.

4. United States – Reciprocal Tariff Measures

Perhaps the most contentious discussion surrounded the United States’ recently announced reciprocal tariffs. China, joined by twenty other members, expressed significant concern over the economic implications and legal consistency of these actions within the WTO framework. China criticized the move as undermining the rules-based trading system and called for a unified multilateral response.

The U.S. defended its actions under the WTO's "essential security" exception. In a statement under "Other Business," it clarified that President Donald Trump had declared a national emergency on 2 April, citing persistent trade deficits as a national and economic security threat. The U.S. maintained that its actions were in line with Article XXI of the General Agreement on Tariffs and Trade (GATT) and did not constitute a violation of its WTO tariff bindings.

China countered, urging resolution through diplomatic engagement within the WTO framework, emphasizing that trade wars have no winners. While no additional members responded to this specific exchange, the atmosphere indicated mounting tensions around the use of national security as a justification for trade restrictions.

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Broader Scope of Trade Concerns

Recurring STCs continue to cover an expansive spectrum of issues, including:

• Non-Tariff Barriers and Environmental Policies

• Import/Export Restrictions

• Subsidy Programs and Domestic Taxes

• Sanitary and Phytosanitary (SPS) Measures

• Halal Certification and Licensing Delays

• Sector-Specific Measures in agriculture, semiconductor manufacturing, food products, electric vehicles, liquors, and more

This ongoing dialogue underscores the CTG’s role as a central platform for resolving practical trade frictions before they escalate into formal disputes.

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Subsidiary Bodies and Future Direction

The CTG Chair also reported on the ongoing consultations regarding the appointment of officers to its 14 subsidiary bodies. While no final appointments were made, efforts to reach consensus will continue. Once agreement is reached, the Chair will reconvene the meeting solely to confirm these appointments.

In terms of future planning, the CTG reviewed two informal sessions held earlier in the year:

• 25 February: Dedicated to ideas for improving the management of STC discussions.

• 7 April: Focused on enhancing the use of digital tools to facilitate the work of the CTG and its subsidiary bodies.

A draft Decision on the recording of resolved trade concerns was also presented. The proposal aims to formally recognize positive resolutions, drawing on best practices from the SPS and Technical Barriers to Trade (TBT) Committees. Discussions on this proposal are ongoing.

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Transparency and Notification Compliance

The WTO Secretariat presented its latest analysis of notification compliance among members. According to the report:

• Overall submission rate: 77.2%

• One-time notifications: 82.3% compliance

• Regular/periodic notifications: 68.9% compliance

The Secretariat emphasized that transparency remains a foundational WTO principle and encouraged members to continue fulfilling their notification obligations. Least-developed countries’ (LDCs) performance was also addressed in detail, with support offered to improve compliance rates.

Several members welcomed the report, applauding its detail and utility in benchmarking transparency progress across the membership.

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U.S. Raises Concern Over Secretariat Independence

The United States raised what it described as systemic issues regarding the WTO Secretariat's engagement with member states. Specifically, the U.S. claimed that the Secretariat had undertaken certain activities relevant to the CTG without adequate consultation. It advocated for formal procedures requiring member approval prior to such initiatives.

This sparked a lively exchange, with 19 members responding. While several shared the desire for greater transparency and member consultation, many cautioned against creating rigid approval requirements that could hinder the Secretariat’s efficiency and technical independence.

Deputy Director-General Angela Ellard responded on behalf of the Secretariat, defending its neutrality and transparency. She highlighted the recent launch of a new transparency portal and reiterated the Secretariat’s commitment to remaining member-driven, while also emphasizing ongoing efforts to solicit feedback and adapt accordingly.

Passing the Torch: Election of New CTG Chair

The meeting concluded with the election of Mr. Gustavo Nerio Lunazzi of Argentina as the new Chair of the Council for Trade in Goods. Outgoing Chair Ambassador Clare Kelly of New Zealand reflected on the historic role of Room W — the very room where the GATT negotiations helped shape the modern trading system.

“As delegates walk into this room,” she said, “they walk through history. It is our duty not only to preserve the legacy of multilateral trade but to adapt and enhance it to meet the challenges of today.”