The European Union, in a statement delivered at the WTO Dispute Settlement Body (DSB) meeting on 24 July 2026, objected to Russia's request for the establishment of a panel concerning the EU's Carbon Border Adjustment Mechanism (CBAM). The EU also provided updates on the implementation of rulings in disputes over biotech products and palm oil-based biofuels.
On CBAM, the EU reiterated its condemnation of Russia's war against Ukraine and argued that Russia cannot expect improved market access while waging its aggression. The EU declined consultations with Russia, stating they could not lead to a mutually satisfactory solution. The EU emphasized that CBAM is a climate-oriented, non-discriminatory tool designed to comply with WTO rules.
Regarding the biotech dispute (DS291), the EU reported that on 2 June 2026, the European Commission adopted a decision authorizing GM soybean MON 94637. On the same day, the Commission presented four draft decisions to the Appeal Committee, which resulted in 'no opinion' votes. The Commission adopted decisions on 29 June 2026. On 10 June 2026, three draft decisions were presented to the Standing Committee on Plants, Animals, Food and Feed, also resulting in 'no opinion'. These were presented to the Appeal Committee on 15 July 2026, again with 'no opinion'. The Commission will proceed with next steps.
On palm oil disputes (DS600 and DS593), the EU noted that on 10 April 2026, the Commission adopted amendments to Delegated Regulation 2019/807. However, on 8 July 2026, the European Parliament objected to the amendments, preventing their entry into force by early September. The EU is assessing the implications and remains ready to engage with Malaysia and Indonesia.
The EU also addressed the ongoing impasse on Appellate Body appointments, noting that since 11 December 2019, the WTO lacks a binding two-tier dispute resolution system. The EU reaffirmed its commitment to reform and encouraged other Members to join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA).
On DSB reform consultations, the EU acknowledged the DSB Chair's report but noted that conditions are not yet ripe to resume the process, as established prior to MC14. The EU expressed openness to informational sessions if other Members find them useful.