Economy March 27, 2026

EU and CPTPP Nations Say WTO Faces a 'Critical Juncture' and Must Undergo Deep Reform

Group of like-minded trading partners calls for comprehensive changes and closer cooperation amid concerns over market-distorting practices, oversupply and economic coercion

By Leila Farooq
EU and CPTPP Nations Say WTO Faces a 'Critical Juncture' and Must Undergo Deep Reform

Representatives of the European Union and members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership met on the sidelines of the WTO ministerial in Cameroon and said the World Trade Organisation is at a "critical juncture". They urged urgent, deep, comprehensive and inclusive reform of the WTO and pledged to enhance cooperation on trade diversification and supply chain resilience. Both groups flagged shared worries about market-distorting practices, oversupply and economic coercion and noted recent U.S. tariffs affecting their members. Failure to make progress at the WTO could push the EU, CPTPP and like-minded economies toward deeper bilateral or plurilateral arrangements as an alternative.

Key Points

  • EU and CPTPP delegations said the WTO is at a "critical juncture" and urged urgent, deep, comprehensive and inclusive reform.
  • Both groups plan to enhance cooperation on trade diversification and supply chain resilience while addressing concerns about market-distorting practices, oversupply and economic coercion.
  • If WTO negotiations in Yaounde fail to produce a viable reform path, the EU, CPTPP and like-minded economies may pursue closer cooperation or deals among willing members as a contingency - affecting international trade and market access.

Delegations from the European Union and countries within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership met on the sidelines of the World Trade Organisation ministerial conference in Cameroon on Friday, declaring that the WTO now stands at a "critical juncture" and requires deep reform.

In a joint statement, officials from the two blocs said they recognised the need for "urgent, deep, comprehensive and inclusive reform of the WTO." They added that members aim to "enhance cooperation" among like-minded WTO participants to help drive improvements in the global trading system.

The CPTPP group comprises 12 countries, including Australia, Japan, Canada, Mexico, Malaysia and Britain, and met with EU representatives to discuss a shared agenda. Participants emphasised working together on areas of common interest such as trade diversification and strengthening supply chain resilience.

Both the EU and CPTPP members expressed concern about what they characterised as "market-distorting practices" and oversupply in global markets, and they highlighted the risk posed by "economic coercion." These shared worries were a central part of the statement released following the meeting.

The joint communiqué also noted that EU and CPTPP member countries have been affected by tariffs imposed by the United States over the past year. Against that backdrop, the European Union has called for a review of the WTOs Most Favoured Nation principle, which requires trading partners to treat each other equally, citing concerns related to China.

EU Trade Commissioner Maros Sefcovic recently proposed that the bloc make low-tariff access to its markets for Chinese companies conditional on the Chinese economy being open to European businesses. That position was referenced in the wider discussion on rethinking established WTO norms.

Looking ahead, participants warned that failure to identify a credible path for WTO reform could prompt the EU, the CPTPP and other like-minded economies to deepen their cooperation independently and pursue trade agreements among willing members as a "plan B" if the Yaounde talks do not deliver meaningful progress. Swedens Trade Minister Benjamin Dousa said earlier that such an outcome was a possible response should negotiations stall.

The meeting underscores tensions within the global trading system and signals a coordinated effort by several major economies to push for broad changes to international trade governance while exploring closer collaboration outside the multilateral framework if necessary.


Key takeaways

  • The EU and CPTPP called for comprehensive WTO reform and committed to greater cooperation among like-minded members.
  • Shared concerns include market-distorting practices, oversupply and economic coercion, and recent U.S. tariffs have affected members of both groups.
  • Absent a viable WTO reform path, participating economies may deepen bilateral or plurilateral arrangements as an alternative to stalled multilateral talks.

Risks

  • Ongoing tariffs imposed by the United States on EU and CPTPP members present immediate trade and market access risks for exporters and manufacturing sectors.
  • Failure to achieve WTO reform could drive fragmentation of the multilateral trading system and increase reliance on bilateral or plurilateral agreements, impacting global supply chains and trade finance.
  • Calls to rethink the Most Favoured Nation principle and to condition low-tariff market access on reciprocal openness could create uncertainty for firms engaged in cross-border investment and export markets, particularly those trading with China.

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