WTO faces inflection point as EU, CPTPP call for sweeping overhaul
Geneva — The World Trade Organization is at a “critical juncture” and requires deep, structural reform, the European Union and members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) said on Friday, citing mounting challenges to the multilateral trading system.
In a joint statement, the groups warned that persistent institutional paralysis, rising protectionism and unresolved disputes risk undermining the WTO’s core functions, including its ability to negotiate new rules and enforce existing ones.
They said urgent action was needed to restore credibility and ensure the organization remains responsive to modern trade realities.
Officials highlighted the continued dysfunction of the WTO’s dispute settlement mechanism, particularly the paralysis of its appellate process, which has limited the body’s capacity to deliver binding resolutions in trade conflicts.
They called for a fully operational and accessible system to uphold rules-based trade.
The statement stressed the need to update WTO frameworks to address emerging areas such as digital commerce, industrial subsidies and supply chain resilience.
The EU and CPTPP members said current rules do not adequately reflect evolving global trade patterns or technological change.
The groups reaffirmed their commitment to a rules-based international trading system, warning that fragmentation into competing trade blocs could weaken global economic stability.
They urged broader membership engagement to advance consensus-driven reforms.
The WTO, established in 1995 to oversee global trade rules, has faced increasing pressure in recent years amid geopolitical tensions and shifting economic priorities among major economies.
