European Trade Commissioner Maroš Šefčovič reaffirmed the EU’s dedication to the World Trade Organization (WTO) on Tuesday, following French President Emmanuel Macron’s recent doubts about the organization’s effectiveness.
Macron had criticized the WTO, asserting that it was no longer working and that countries, including the US and China, were increasingly bypassing its rules.
Speaking in Geneva, Šefčovič emphasized the EU’s ongoing support for multilateral trade rules, saying, “We are committed to the proper functioning and revitalisation of the World Trade Organisation.” He added that the WTO must address the current challenges in global trade to remain relevant. His comments came ahead of a meeting with WTO Director-General Ngozi Okonjo-Iweala.
This stance stood in stark contrast to Macron’s remarks earlier in the week. During a speech before French ambassadors, Macron pointed out the non-compliance of major powers like the US and China with WTO rules, particularly in the context of trade barriers and local production incentives. He criticized the EU’s approach to tariffs on Chinese electric vehicles, stating that they were insufficient compared to the protectionist measures adopted by the US under the North America Free Trade Agreement (NAFTA). Macron also referenced the US’s Inflation Reduction Act, which incentivizes local battery production through tax breaks.
Macron argued that as China and the US pursue local production through policies that would be seen as discriminatory under WTO rules, the organization is failing to address such practices. “At a time when the rules of the WTO are no longer respected by either China or the US, we will continue to do so, but on our own. It’s not working,” he stated.
In response, Šefčovič stressed that the WTO must evolve to stay relevant and tackle the challenges posed by modern trade dynamics. “To remain the most relevant forum for global trade, we must reinvent the WTO so it can successfully overcome the problems we face today,” he said.
The EU has long championed the reform of the WTO’s Dispute Settlement Body, which has been blocked by the US, and has advocated for new rules on subsidies and overfishing. However, with the potential return of Donald Trump to US leadership and a continued focus on protectionist policies, the future of WTO reforms remains uncertain.
