Tensions at WTO Committee on Market Access

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Ongoing global trade tensions overshadowed the 13–14 May meetings of the World Trade Organization’s (WTO) Committee on Market Access (CMA), which marked its 30th anniversary. The session, chaired on an interim basis by Ms. Nicola Waterfield of Canada, featured pointed exchanges over recent U.S. tariff actions, China’s reciprocal measures, and the European Union’s deforestation-related trade regulation.

Tariff Disputes Underscore Fractures

Canada, the EU, and Norway introduced a joint item on the agenda titled “Fragmentation of Global Trade Through Tariffs and the Global Costs,” voicing concern over the destabilizing effect of recent U.S. tariff measures. Ten other members echoed these concerns, including Switzerland, Brazil, and China, who explicitly criticized the United States. The U.S. delegation acknowledged the remarks and stated it would relay the concerns to Washington.

The EU highlighted the broader economic risk posed by rising protectionism, referencing WTO forecasts of a global trade downturn. Canada described U.S. tariff actions as “unwanted” and economically disruptive, while Norway called the current trade landscape “unstable and unpredictable,” urging reform of WTO rules to reflect new economic realities.

United States–China Tariff Conflict

China raised the issue of U.S. “reciprocal tariffs” imposed under an April 2 executive order, labeling them a violation of WTO principles. It cited progress in recent bilateral discussions with the U.S. in Geneva, which led to a temporary suspension of some retaliatory measures.

The U.S. responded by referencing its trade deficit—over $1 trillion annually in 2023 and 2024—as justification for the emergency tariff action under domestic law. Washington reiterated that the matter was already under dispute settlement and questioned the appropriateness of China’s raising it again in the CMA.

EU Deforestation Regulation Draws Widespread Criticism

Brazil, Colombia, Paraguay, and Peru led criticism of the EU’s Regulation on Deforestation-Free Supply Chains (EUDR), calling it an unjustifiable trade restriction and a de facto quantitative import barrier. They urged the EU to notify the measure to the CMA.

The United States, Canada, Australia, New Zealand, and Russia expressed similar concerns. The U.S. urged a delay in implementation pending further engagement with stakeholders. In response, the EU argued the EUDR was a non-discriminatory internal regulation in line with WTO rules.

Additional Trade Concerns

Beyond the U.S.–China and EU-related disputes, members discussed 31 other trade concerns, six of which were raised for the first time. New issues included China’s restrictions on coffee and macadamia imports, proposed mineral export controls by the Philippines, India’s import measures on wooden boards and viscose staple fiber, and market access restrictions in Thailand and under the ACCTS agreement.

The session highlighted growing fragmentation in the global trading system and divergent views on the permissible scope of national measures under WTO rules, reinforcing calls for systemic reform and renewed multilateral engagement.

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