Reform of global trade governance: the role of the European Union

Abstract

ABSTRACT The World Trade Organization (WTO) faces an existential crisis. Nominations to the Appellate Body (AB) are deadlocked; tariffs are being raised and retaliated against; and substantive negotiations are stalled. A number of Members, including European Union (EU or the Union) and its Member States, are convinced that the WTO is in need of profound reform, inter alia, with a view to integrating developing countries further, addressing unfair subsidies and state-owned enterprises (SoEs), and optimizing the dispute settlement mechanism (DSM). The EU has recently presented several reform proposals. It has also tightened its domestic tools for enforcing trade obligations and is cooperating with like-minded partners outside the institutional framework of the WTO. The present article looks into the WTO’s challenges from a European perspective, with a critical analysis of the EU’s proposals for reform, while also highlighting its approach on tackling issues that affect the international economic order outside the WTO.