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EU's Pacific alliance would not replace WTO, EU officials say
Published by Global Banking & Finance Review®
Posted on June 27, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 27, 2025
2 min readLast updated: January 23, 2026
The EU's trade alliance with Pacific nations aims to support WTO reforms, not replace it, fostering a modern, rules-based trading system.
By Philip Blenkinsop
BRUSSELS (Reuters) -The European Union's plan to cooperate with Pacific Rim countries would aim to overcome some of the difficulties of the World Trade Organization, but would not seek to replace it, EU officials said on Friday.
The WTO is struggling for relevance as geopolitical tensions rise and the United States imposes unilateral tariffs, flouting its WTO commitments.
European Commission President Ursula von der Leyen told reporters late on Thursday that "structured cooperation" with the 12-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership , or CPTPP, could be thought about "as a beginning of redesigning the WTO".
German Chancellor Friedrich Merz went further, saying the new trade grouping could gradually replace the WTO.
On Friday, however, EU officials said the plan did not entail setting up a rival to the WTO.
Instead, the Commission said cooperation with the CPTPP was a way to advance a modern, rules-based trading system when the WTO urgently needs reform.
"We are working closely with like-minded partners, including CPTPP countries, to advance meaningful, rules-based reform that upholds fair and open global trade," it said in a statement.
One area of work could be setting up a system to settle disputes, required because the United States has blocked appointments to the WTO's Appellate Body, the ultimate arbiter on global trade.
The EU-CPTPP cooperation would also be designed to send a political signal that a large number of countries support open and rules-based global trade.
The CPTPP is a 12-nation free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which Britain joined late last year.
(Reporting by Philip Blenkinsop; editing by Barbara Lewis)
The EU's cooperation with Pacific Rim countries aims to address some difficulties faced by the WTO without seeking to replace it. It focuses on advancing a modern, rules-based trading system.
The WTO is struggling for relevance due to rising geopolitical tensions and the United States imposing unilateral tariffs, which undermine its commitments.
The CPTPP is a 12-nation free trade agreement that includes countries like Australia, Canada, Japan, and Mexico, aimed at promoting trade and economic integration among its members.
The EU plans to establish a system to settle disputes, especially since the United States has blocked appointments to the WTO's Appellate Body, which is crucial for resolving global trade conflicts.
The cooperation is designed to signal political support from a large number of countries for open and rules-based global trade, emphasizing the importance of collaboration in trade reform.
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