Let's create a new World Trade Organization - Von der Leyen
European Commission chief Ursula von der Leyen has proposed to EU leaders the launch of a Europe-led initiative to establish a structured trade cooperation with Asian countries, potentially laying the groundwork for an alternative to the gridlocked World Trade Organisation (WTO).
At Thursday’s EU summit in Brussels, European leaders discussed the possibility of overhauling the WTO’s ins utional framework, including its stalled dispute resolution mechanisms, to better reflect the current global trade landscape.
“The WTO hasn’t worked for years,” German Chancellor Friedrich Merz said in a press conference following the summit, referencing persistent dysfunction under both the Trump and Biden administrations.
Commission President Ursula von der Leyen presented leaders with different options of trade deals, labelling as the most attractive a closer cooperation between the EU and members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a regional trade pact of 11 Pacific Rim countries and the UK.
She introduced the initiative as a potential first step toward reshaping the global trade order.
“I said that we can think about this as the beginning of redesigning the WTO—of course, understanding what should be reformed positively within it,” von der Leyen told reporters after the summit.
She stressed the importance of learning from the WTO’s shortcomings and showing the world that “free trade based on rules” remains achievable with a wide group of willing partners.
“This is a project we should truly engage in. CPTPP and the European Union—that’s my team,” she said, adding that the EU must take the lead in managing this initiative.
Asked whether the United States should be involved, von der Leyen replied: “As far as I understand, the Americans left the CPTPP at a certain point.”
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