EU Eyes CPTPP for Global Trade Evolution

The European Union has revealed plans to collaborate with the Pacific Rim, aiming to enhance global trade systems while supporting the World Trade Organization. EU officials clarified on Friday that the initiative is not intended to replace the WTO but to foster a modern, rules-based trading framework.

European Commission President Ursula von der Leyen indicated on Thursday that the partnership with the CPTPP might signal the onset of a WTO redesign. Meanwhile, German Chancellor Friedrich Merz suggested that this new trade alliance could eventually take the place of the WTO.

The EU aims to convey a political message endorsing rule-based global trade by aligning with CPTPP. Work includes establishing a dispute settlement system, crucial due to the US blocking WTO Appellate Body appointments. The CPTPP, comprising 12 nations including recent joiner Britain, is seen as a platform for deeper trade relations.

(With inputs from agencies.)