At the recent summit in Brussels, European Commission President Ursula von der Leyen suggested that Europe could establish its own trade organisation as an alternative to the World Trade Organization (WTO), highlighting concerns over the WTO’s current ability to remain relevant in a shifting global landscape.
European concerns over the WTO’s relevance
According to statements by Germany’s Chancellor Friedrich Merz after the EU summit, von der Leyen presented a proposal to EU leaders to create a new trade framework, stressing that the WTO is struggling to fulfil its role effectively. This comes amid broader frustration within the EU over the long-standing paralysis of the WTO’s dispute settlement system, which has been partly stalled by the United States blocking appointments to its appellate body.
Von der Leyen later clarified her vision, describing it as a “structured cooperation with Asian countries”, which she suggested could be seen as a reconfiguration of the WTO rather than a complete departure from multilateral trade rules.
A push for strategic autonomy in trade
This proposal fits into the EU’s wider agenda of seeking greater strategic autonomy, particularly in trade and industrial policy. Over the past years, Brussels has increasingly emphasised the need to reduce dependence on external actors and to build more resilient supply chains, especially in critical sectors such as energy, digital technologies and raw materials.
An EU-centred trade organisation could serve both as a complement and a safeguard, providing the bloc with tools to respond collectively to global trade disruptions or unfair practices, while still engaging with existing multilateral structures.
Potential implications for global trade
Analysts caution that such a move could deepen divisions in global trade governance if perceived as undermining the WTO. However, proponents argue that with the current system facing significant gridlock, Europe needs to explore alternative mechanisms to protect its economic interests and to forge closer partnerships with key Asian economies.
So far, there are no concrete details on how this proposed European-led structure would function or how it would align with WTO rules. Discussions are expected to continue in upcoming EU forums and ministerial meetings.
