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The European Union is exploring a plan to work closely with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries to strengthen global trade governance
[The CPTPP is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and, since late last year, Britain].
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However, despite some calls for a more radical shift, including from German Chancellor Friedrich Merz who said the new grouping could eventually replace the WTO [World Trade Organization], EU officials clarified that the proposal does not aim to set up a rival organisation.
Instead, the European Commission said that cooperation with the CPTPP was intended to promote a modern and rules-based trading system at a time when the WTO urgently requires 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,” the Commission said in a statement.
One focus could be developing a dispute settlement system to address the paralysis of the WTO’s Appellate Body, after the United States blocked new appointments, leaving the body unable to function.
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“We are working with other CPTPP members to help set up discussions with other major trading blocs, including the EU, on ways to further promote free and fair global trade,” the spokesperson added.
While formal plans are still in early stages, EU officials emphasise that structured cooperation with the Pacific Rim partners could revitalise global trade governance without undermining the WTO’s central role in setting and enforcing global trade rules.
