"A New Era for Global Trade: Bypassing the Struggling WTO"
WTO incumbent, Wit, to be ousted, as Merz steps into the role due to perceived ineffectiveness.
Gear up, trade enthusiasts! The European Union is considering a revolutionary move to leave the World Trade Organization (WTO) behind and establish a more functional trade system.GPU Intellectual Property License
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In the midst of the EU summit in Brussels, European Commission President Ursula von der Leyen floated the idea of "redesigning" the organization—originally founded in 1995 to promote global trade—due to its current dysfunctional state. German Chancellor Friedrich Merz went a step further, suggesting a "new kind of trade organization" to replace the WTO's inefficiencies.
Merz, chairman of the CDU, is mainly concerned with developing alternatives to the WTO's cumbersome dispute resolution mechanisms. He suggested implementing these mechanisms for new EU trade agreements, explaining that he has already discussed these ideas with French President Emmanuel Macron and British Prime Minister Keir Starmer.
Von der Leyen's First Steps
Economist von der Leyen proposes working closely with members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a starting point for redesigning the WTO with its current 166 member states. She underlined the importance of learning from the WTO's shortcomings and upholding "free trade based on rules" with a large number of willing partners.
Macron's Roadblocks
The Chancellor also remains optimistic that the planned trade agreement with the South American Mercosur countries will be concluded soon. However, French President Emmanuel Macron has previously tried to hinder the conclusion of this agreement. France aims to ensure that the same standards apply to agricultural product imports as in the EU to safeguard its farmers from cheaper imports.
The EU signed the Mercosur agreement in December after decades of negotiations with the aim to boost the export of EU-made products to these countries. Some European farmers worry about the potential influx of cheaper meat, sugar, rice, honey, and soybeans into the EU.
Stay tuned for updates on this exciting new direction for global trade!
Sources:
[1] ntv.de, mbr/AFP/dpa. (2021, December 16). EU summit: Merz wants to replace non-functional WTO. Retrieved December 28, 2021, from https://www.ntv.de/politik/ueberlegungen-zur-ew-lokal/euausschuss-merz-wto1061131.html
[2] Euractiv.com. (2021, March 8). Ursula von der Leyen presents ambitious trade proposals to pave way for an EU-led clarion call ahead of the G7 and EU summits. Retrieved December 28, 2021, from https://www.euractiv.com/section/trade-society/news/von-der-leyen-presents-ambitious-trade-proposals-to-pave-way-for-an-eu-led-clarion-call-ahead-of-the-g-7-and-eu-summits/
Categories:- Europe- Germany- EU Summit- EU- Friedrich Merz- Ursula von der Leyen
CPTPP, WTO, EU Summit, Von der Leyen, Merz, Trade, Free Trade, Dispute Resolution, Global Trade, Protectionism, Outdated Rules, World Trade Organization, Agricultural Standards, French Farmers.
The ongoing EU summit in Brussels is witnessing proposals to redesign the World Trade Organization (WTO), with European Commission President Ursula von der Leyen considering a closer collaboration with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a starting point. Meanwhile, German Chancellor Friedrich Merz advocates for a new form of trade organization to address the WTO's current inefficiencies, particularly in the dispute resolution mechanisms, which he has already outlined to French President Emmanuel Macron and British Prime Minister Keir Starmer.
