EU-CPTPP Alliance: A New Path For Global Trade!

The European Union is stepping up to collaborate with Pacific Rim countries through the CPTPP in a move to reform and support the World Trade Organization (WTO), according to EU officials speaking Friday. As the WTO grapples with increasing geopolitical tensions and unilateral tariffs from the United States, the EU's plan is not to replace the WTO but to work within the existing framework to advance modern trade rules.

European Commission President Ursula von der Leyen suggested that this 'structured cooperation' with the 12-nation CPTPP could serve as a starting point for redesigning the WTO. German Chancellor Friedrich Merz additionally mentioned the potential gradual replacement of the WTO by this new trade body.

Nevertheless, EU officials clarified that the intention is not to create a rival organization. Instead, they seek to foster a rules-based trading system and establish a mechanism for dispute resolution, especially as the United States has blocked appointments to the WTO's Appellate Body. The strategic cooperation also signals wide support for open global trade practices.

(With inputs from agencies.)