TPM Consultants: June 2026 - Key Highlights

KEY HIGHLIGHTS

Members adopt rules of procedure at first fisheries subsidies committee meeting (01 May)

The First regular meeting of the Committee on Fisheries Subsidies was held on 1st May 2026. The Committee on Fisheries Subsidies adopted its rules of procedure, agenda and notification submission templates. It also granted permanent observer status to the United Nations’ Food and Agriculture Organization and reaffirmed its role in monitoring the implementation and transparency obligations of the Agreement on Fisheries Subsidies, which came into force on 15th September 2025. Twelve WTO members have submitted their regional fisheries management organization / arrangements. WTO Director-General emphasized transparency for effective functioning of the committee. The Agreement on Fisheries Subsidies has now been formally accepted by 119 WTO members, with Paraguay, Samoa, and Saint Vincent and the Grenadines joining most recently.

China challenges India’s Solar and IT Import Measures at the WTO (22 May)

On 22nd May 2026, China requested the establishment of a Dispute Panel to examine measures imposed by India on imports of Solar Cells, Solar Modules and Information Technology (IT) products. China has argued that India’s tariffs on Certain High-Tech imports and incentive schemes for Solar products violates its obligations under WTO since they are contingent upon the use of domestic goods over imported ones. India rejected the allegations, maintaining that its measures are fully WTO-consistent, arguing that China's challenge is particularly ironic given China's dominant position in the global solar manufacturing supply chain. As a result, the Panel was not established at this meeting. However, under WTO procedures, if China submits a second request, the Dispute Settlement Body would normally establish the Panel at a subsequent meeting.

WTO Director-General calls for urgent action to preserve and reform the global  trading system (28 May)

The WTO Director-General has emphasized that the global trading system is facing significant challenges from rising trade tensions, geopolitical fragmentation, and increasing protectionist measures. WTO members have been urged to seize the opportunity presented by the post-MC14 period to advance meaningful reform, strengthen the organization’s negotiating and dispute-settlement functions, and reaffirm their commitment to a rules-based multilateral trading system. The Director- General stressed that trade remains a critical driver of economic growth, resilience, and development, warning that unilateral actions and policy uncertainty could undermine global prosperity. She called on the WTO members to work collaboratively to modernize WTO Rules, address emerging trade issues, and ensure that the organization remains effective and relevant in an increasingly complex global economic environment.

Trade Policy Review of Japan (29 May)

The sixteenth review of the trade policies and practices of Japan took place on 27th and 29th May 2026. Japan remains a highly developed, export-oriented economy and a strong supporter of the multilateral trading system. However, during the 2022–2026, it increasingly integrated economic security considerations into its trade, investment, industrial, and technology policies. While maintaining an open trade regime and expanding its network of regional trade agreements, Japan adopted measures to strengthen supply chain resilience, promote domestic production of critical goods such as semiconductors, batteries, and critical minerals, and support its green and digital transformations through substantial subsidies, tax incentives, and public investment. Despite modest economic growth, Japan remained deeply integrated into global value chains, relied heavily on trade and outward investment, and pursued policies aimed at enhancing competitiveness, technological leadership, decarbonization, and long-term economic resilience while preserving its commitment to WTO principles and international economic cooperation.

WO Member States review notifications, anti-dumping actions at Regular Spring  Meeting of Committee (28 Apr)

The WTO’s Committee on Anti-Dumping Practices met on 28th April 2026 to review the latest notification made by the Member States. It reviewed new notifications of legislation submitted by Botswana. It also continued its review of the legislative notifications of Cambodia, European Union, Liberia, Saint Kitts and Nevis, and Solomon Islands. WTO members reviewed semi-annual and ad-hoc anti-dumping notifications, discussed investigations, provisional and final measures, and reviews undertaken by several WTO members, including India, China, the EU and the US. Forty-eight WTO members notified the committee of anti-dumping actions taken in the period covering 1st July to 31st December 2025, while sixteen WTO members stated that no anti-dumping action was taken by them. Forty-six WTO members had also stated that they had no established authority to conduct an investigation and take anti- dumping action.

WTO members review safeguard actions and exchange views on measures  affecting steel products (27 Apr)

The WTO Committee on Safeguards held their meeting on 27th April, where they reviewed safeguard actions covering 38 products, 12 of which were steel / metal products. The Committee reviewed safeguard notifications from 19 WTO members, with Indonesia, Madagascar, the Philippines and Türkiye accounting for nearly half of the actions examined. Significant concerns were raised over Egypt’s investigations on iron and steel products, the European Union’s safeguard measures and investigations on ferro-alloying elements and grain-oriented electrical steel, and the United Kingdom’s adjustment of TRQs on certain steel products. Many WTO members asked for consultation with the U.S. regarding the tariff measures. However, the U.S. maintained that tariffs were imposed under the essential security exception in Article XXI of the GATT 1994 and therefore did not constitute safeguard measures. India disagreed, asserting that the measures fell within the scope of safeguard disciplines, while Brazil and China raised concerns over their implications for the multilateral trading system and global supply chains.

U.S. Court of International Trade finds Section 122 tariffs as unlawful (20 May)

The U.S. Court of International Trade has, in the case of Burlap vs. United States, held that tariffs imposed under Section 122 of the Trade Act, 1974 were invalid. Following the decision of the U.S. Supreme Court invalidating the reciprocal tariffs imposed earlier, the U.S. Government imposed a universal import tariff of 10% pursuant to Section 122 of the Trade Act, 1974 in order to address a balance of payments crisis. The Court, by a 2-1 majority, ruled that the U.S. Government’s reliance on trade deficit and the current account deficit to invoke Section 122 is erroneous. The Court held that the statute contemplates tariffs as a tool for remedying a balance of payments crisis as measured by liquidity, official settlements and basic balance, and the administration failed to demonstrate that these conditions were met. However, the Court refused to grant a universal injunction and as a result, the relief was applicable only to the entities that were parties to the case.

The decision of the Court has been appealed to the Federal Court of Appeals, which has granted a temporary stay of the order. Therefore, for the time being, the tariffs continue to be in force. The tariffs imposed are set to expire on 24th July 2026, unless extended by the U.S. federal legislature. Despite the same, in line with its obligations under Article XII of GATT, the U.S. has notified the WTO Committee on Balance-of- Payments about the imposition of tariffs, with inter-governmental consultations expected to take place in June 2026.

To read this Newsletter in full, please click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.