Trump’s global tariff threats have further undermined the authority of the World Trade Organization.
The European Union’s executive will acknowledge that these institutions likely won’t recover from the breakdown of the global order. In fact, Europe should prepare for it not to come back.
“A return to the previous status quo seems increasingly unlikely,” the draft warns.
The EU could be particularly affected by this development. Key features of the bloc, such as its internal market, trade flows, international partnerships, and technical standards, all depend on a functioning multilateral system.
“The instability and partial disfunction of the international order and the partial fracturing of global economies have a destabilising effect on the EU’s ability to act in the interest of its economy and the well-being of its people,” it adds.
The final text of the report presented on Tuesday could still differ significantly from the drafts.