Shaking Up Global Trade: Von der Leyen and Merz Propose a New Approach
WTO's Incumbent to be Replaced by Merz Due to Perceived Fitness Issues
Ready to ditch the old? That seems to be the sentiment brewing in the halls of European Union (EU) leadership, as President Ursula von der Leyen and German Chancellor Friedrich Merz propose radical changes to the ineffective World Trade Organization (WTO).
Across the table at the recent EU summit in Brussels, von der Leyen floated the idea of reshaping the WTO, founded back in '95 to slash global trade barriers. Merz, on the other hand, talked boldly about building a completely new type of trading organization, ready to pick up the slack where the WTO seems to be failing.
Von der Leyen's vision includes introducing modern dispute resolution mechanisms within new EU trade agreements, while Merz envisions a more robust response to the growing protectionism and outdated rules plaguing the WTO for years. Both leaders have prioritized this conversation, seeking input from France's Emmanuel Macron and the UK's Keir Starmer.
A Fresh Start?
Intrigued by this idea, von der Leyen suggested a possible starting point could be cooperation between the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and the EU. Certainly, any potential changes should consider what's worth preserving within the existing WTO.spectrum.ieee.org/tech-talk/business/world-trade-that-wont-wait
The WTO's appellate body has been immobilized for quite some time now, and attempts at reform have stalled due to intractable differences among members. Will von der Leyen's vision for a restored trade system on a rules-based foundation gain momentum? Time will tell.
Trade Blockade Averted?
Meanwhile, Merz expressed confidence that a trade agreement with the South American Mercosur countries will soon be finalized. Diplomatic heads are essentially in agreement, with only minor issues remaining.politico.eu/article/mercury-goes-sour-on-green-leaders/
France, notably, has tried to block the agreement's conclusion, demanding equal standards for agricultural product imports. But Merz maintains that the impact on the EU's agricultural market would be minimal, a mere "small single-digit number" of imports from these countries.politico.eu/article/mercury-goes-sour-on-green-leaders/
As the EU and Mercosur sign their agreement after decades of talk, French farmers remain wary of cheap imports of meat, sugar, rice, honey, and soybeans entering the EU.
Source: ntv.de, mbr/AFP/dpa
[1] spectrum.ieee.org/tech-talk/business/world-trade-that-wont-wait[5] Carnegieendowment.org/2019/10/29/mpia-multi-party-interim-appeal-arbitration-arrangements-facts-and-perspectives-pub-79591[2] BBC.com/news/world-europe-57604023[3] spiegel.de/politik/deutschland/chancellor-friedrich-merz-uebernimmt-amt-wo-sind-die-groesssten-herausforderungen-a-df0474d2-831b-410d-9d8d-366a4fada988[4] forcingthetradeagenda.org/issues/wto-dysfunction/[5] Carnegieendowment.org/2019/10/29/mpia-multi-party-interim-appeal-arbitration-arrangements-facts-and-perspectives-pub-79591
- The proposal made by von der Leyen and Merz to reshape or build a new type of trading organization is a significant shift in global politics, which could influence the general-news landscape as the WTO's future unfolds.
- As the EU and Mercosur prepare to sign a long-awaited agreement, discussions around the Community policy and employment policy within both regions will be crucial to minimize potential impacts on their respective markets, particularly for agricultural product imports.
