REGULAR MEETING OF THE DISPUTE SETTLEMENT BODY, 26 SEPTEMBER 2025

REGULAR MEETING OF THE DISPUTE SETTLEMENT BODY, 26 SEPTEMBER 2025

Statements as delivered by Mr. Davide GRESPAN, Minister-Counsellor

AGENDA POINT 1: SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

1.2. UNITED STATES - SECTION 110(5) OF THE US COPYRIGHT ACT: STATUS REPORT BY THE UNITED STATES (WT/DS160/24/ADD.238)

• We thank the United States for its status report and its statement today.
• We refer to our previous statements. We would like to resolve this case as soon as possible.

AGENDA POINT 1: SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

1.3. EUROPEAN COMMUNITIES - MEASURES AFFECTING THE APPROVAL AND MARKETING OF BIOTECH PRODUCTS: STATUS REPORT BY THE EUROPEAN UNION (WT/DS291/37/ADD.201)

• We recall that the EU approval system is not covered by the DSB's recommendations and rulings.

• On 4 July 2025, the Commission adopted the Decision authorising the placing on the market of GM soybean ([1]) for food and feed uses.

• On 15 July 2025, the Commission presented for a vote to the Appeal Committee one decision authorising the placing on the market of GM maize DP51291. The vote taken during the meeting resulted in 'no opinion'. The Commission will proceed with the next steps for regulatory approval.

  ([1]) GM soybean MON 87705 × MON 87708 × MON 89788

AGENDA POINT 1: SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

1.7 EUROPEAN UNION AND CERTAIN MEMBER STATES - CERTAIN MEASURES CONCERNING PALM OIL AND OIL PALM CROP-BASED BIOFUELS: STATUS REPORT BY THE EUROPEAN UNION (WT/DS600/12.ADD1)

• Madam Chair, currently, the European Union is working on the implementation of the DSB recommendations and rulings in this dispute and is making its best efforts to complete the implementation before the expiry of the agreed reasonable period of time on 1 January 2026.
• First, the European Union has already adopted Commission Implementing Regulation (EU) 2022/996 of 14 June 2022 on the rules to verify sustainability and greenhouse gas emissions saving criteria and low indirect land-use change-risk criteria, to address DSB recommendations and rulings relating to the design and implementation of the low Indirect Land Use Change (ILUC) criteria and certification procedure.
• Second, the European Union is preparing the necessary actions to secure the review of the data used to determine which biofuels are high-Indirect Land Use Change (ILUC) risk.

• Third, work is currently ongoing to address the DSB recommendations and rulings relating to the French TIRIB (Taxe Incitative Relative à l'Incorporation de Biocarburant) measure as part of a larger legislative reform.

  AGENDA POINT 2: CHINA - ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS (DS611)

• The European Union thanks the panellists, the MPIA appeal arbitrators and the WTO Secretariat for their work on the case China - IPRs Enforcement (EU). We acknowledge the time and effort dedicated to this dispute both at panel and appeal stage.

• We welcome the results of the appellate review. In its Award, the Arbitrator meticulously applied the customary rules of interpretation of public international law to clarify the existing provisions of the TRIPS Agreement. Having relied on the factual findings made by the Panel, the Arbitrator ultimately confirmed that (1) China's Anti-Suit Injunction Policy violates the TRIPS Agreement and (2) that China has not respected its transparency obligations under the TRIPS Agreement.

• The Award makes clear that China's Anti-Suit Injunction Policy establishes a course of action that frustrates standard essential patent holders' exercise of their rights, as conferred on them by other Members under Articles 28.1 and 28.2 of the TRIPS Agreement, to prevent the use of the subject of their standard essential patents, without their consent, and to conclude licensing contracts.

• The Award also sheds light on the scope of the transparency obligations under the TRIPS Agreement. Concretely, the Award clarifies Members' obligation under Article 63.1 of the TRIPS Agreement to make publicly available final judicial decisions of general application pertaining to the subject-matter of the TRIPS Agreement. Moreover, the Arbitrator clarified the content of the obligation to supply information in response to requests made by other Members under Article 63.3, first sentence of the TRIPS Agreement. These findings underscore the role of transparency as a fundamental feature of the multilateral trading system and the operation of the TRIPS Agreement.

• Overall, the Award marks an important win for European innovators, as it confirms that they can continue to defend their intellectual property rights outside China, while it stresses the need for facilitating transparency in the field of intellectual property rights.

• Beyond the substance of this particular dispute, this appeal arbitration further demonstrates that, despite the current Appellate Body situation that is the subject of a long-standing point later on today's agenda, there is a functional and efficient interim arrangement that - among its participants - safeguards the possibility of exercising effectively the right to binding, two-tier, independent and impartial adjudication in accordance with WTO rules.

• In addition, these proceedings have reiterated that appeal proceedings in the WTO can be conducted swiftly and efficiently, while fully preserving the procedural rights of the parties. In that regard, the European Union points at the provisions of the MPIA that are designed to enhance the procedural efficiency of appeal proceedings.

• The European Union now expects China to fully implement the Arbitrator's findings and stands ready to engage with China on the issue of implementation.

• We take note of China's statement. Based on the information available to us at this stage, we cannot take the view that China has fully implemented the binding Award issued by the Arbitrator. We look forward to further engagement with China on the issue of implementation of the Award and we reserve the right to come back to this matter in this forum.

AGENDA POINT 4: APPELLATE BODY APPOINTMENTS

• The European Union refers to its previous statements on this issue and thanks all Members that have co-sponsored the proposal to launch the appointment processes.

• Since 11 December 2019, the WTO no longer guarantees access to a binding, two-tier, independent and impartial resolution of trade disputes.

• A fully functioning WTO dispute settlement system is crucial and a key priority. That is evidenced by the large number of Members co-sponsoring the present proposal relating to the appointment of members of the Appellate Body.

• The EU remains committed to reforming the dispute settlement system so that it meets the interests of all Members and supports rules-based trade.

• That said, despite the substantial work done by Members in dispute settlement reform discussions since MC12, it has now been more than 5 years that the system is not functioning fully.

• Against this backdrop, the MPIA is ever more important as a stop-gap solution to preserve a fully functioning dispute settlement system among the willing Members.

• While we continue to hope to find a long-lasting solution, we invite other Members to join the MPIA in the interim, to strengthen the multilateral trading order.

Under AOB

"European Union - Countervailing Duties on Imports of Biodiesel from Indonesia (DS618)" (EU Notice of Appeal)

• First of all, the European Union thanks the panellists and the WTO Secretariat for their work on this dispute. We acknowledge the time and effort dedicated to this dispute.
• The EU has repeatedly invited Indonesia, in the context of this dispute and other disputes, to join the Multi-party appeal arbitration arrangement ("MPIA") or to agree to similar appeal arbitration procedures on a bilateral and reciprocal basis. This would have allowed the European Union and Indonesia to preserve the main principles and features of the WTO dispute settlement system in disputes between them, despite the persisting blockage of appointments to the Appellate Body. That includes the parties' right to a binding resolution of trade disputes in the WTO and to an independent and impartial appeal review of panel reports.
• The European Union regrets that, to date, Indonesia has not taken up these offers.
• Instead, Indonesia decided to appeal the panel report in Indonesia - Raw Materials (DS592) before the non-functioning Appellate Body, de facto blocking the final and binding resolution of that dispute while alternative appeal arrangements were on the table.
• In this dispute, in the absence of appeal arbitration being available to review the legal errors contained in the panel report, the European Union has no choice but to exercise its right to appeal pursuant to Article 16(4) of the DSU.
• In so doing, the European Union is focusing its appeal on errors that it believes constitute serious errors of law or legal interpretation that need to be corrected.

Re Ukraine / Russia

• The EU reiterates its resolute condemnation of Russia's war of aggression against Ukraine, which constitutes a manifest violation of the UN Charter, and reaffirms its continued and unwavering support for Ukraine's independence, sovereignty and territorial integrity within its internationally recognised borders.

• It also reconfirms the European Union's unwavering commitment to providing continued political, financial, economic, humanitarian, military and diplomatic support to Ukraine and its people.

• We underscore the need to reach, as soon as possible, a comprehensive, just, and lasting peace in Ukraine, in full respect of Ukraine's sovereignty and territorial integrity, based on the principles of the Charter of the United Nations.