EU Commission President Ursula von der Leyen first floated the idea of a wider alliance with CPTPP members in June during EU trade talks with the U.S. She argued that the bloc could “show to the world that free trade with a large number of countries is possible on a rules-based foundation.”
Still, Iyer insists that no new alliances can replace the WTO — or its role as the foundation of the global trade system.
“No FTA is even possible without the WTO,” he said. “The WTO is the operating system, and FTAs are essentially the applications that sit on it. Saying you only need CPTPP is like saying I’ve got Microsoft Word and Excel, so I don’t need Windows.”
With the WTO’s next ministerial conference fast approaching, officials are steeling themselves for bruising negotiations on several issues, ranging from e-commerce to agriculture and fisheries.
Washington, however, remains the main obstacle. The U.S. has for years blocked the appointment of new judges to the WTO’s top appeals court, effectively paralyzing one of its core functions in trade dispute settlement.
“This isn’t about coming out with a big bang change immediately,” Iyer said of the coming reform talks. “It’s about getting that political engagement around it and showing a real, genuine willingness.”