The WTO acknowledged some key feature of the EU's trade policy over the past two years:
* The EU has been a major driving force in the Doha negotiations and in the process of integrating developing countries into the multilateral trading system. These efforts include for example, negotiations for Economic Partnership Agreements with the ACP countries, the implementation of the reformed EU's Generalised System of Preferences (GSP) for developing countries, and the fact that the EU is the major sponsor of trade-related technical assistance within the Aid for Trade framework.
* 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 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.
* Progress has been made in the liberalisation of the EU's internal market for services. Reforms of telecommunications and postal services stand out as significant achievements.
* The EU has made significant progress in implementing the reforms of the EU's Common Agriculture Policy. The WTO recommends pursuing this path further. The comprehensive agricultural offer made by the EU in the Doha Development Agenda negotiations would slash trade-distorting farm subsidies, eliminate all export subsidies and significantly cut its agricultural tariffs.
* The EU's preferential trade agreements are designed to complement the WTO system as they substantially liberalize trade in goods and services between the countries party to the agreement.
Background
The Trade Policy Review Mechanism is 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. It aims at promoting a smoother functioning of the multilateral trading system, by achieving greater transparency in, and understanding of, the trade policies and practices of WTO members. 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.
Along with the other major trading powers in the WTO, the EU is reviewed every two years by the WTO Trade Policy Review Body – the previous review was held in February 2007. The WTO report looks at all trade-relevant measures and practices.
Under the WTO's Trade Policy Review Mechanism, the four largest Members in terms of trade volume are reviewed every two years; currently, these Members 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 Least Developed Country Members.
The review is based on a report by the WTO Secretariat, a report from the EU and written questions from Members, to which the EU replies in writing. The EC has received more than 800 advance written questions. The WTO Trade policy Review meeting takes place in Geneva on 6 and 8 April 2009.
