Representatives of twelve countries and the European Union gathered in Ottawa (Canada) and agreed to carry out some reforms to strengthen the world trade system after trade policies taken by the United States.
Global trade gears up against Donald Trump. Officials from twelve countries and the European Union met in Ottawa (Canada) on Thursday to push forward a string of reforms to strengthen the World Trade Organization (WTO), whose taks has been hampered by the protectionist measures taken by the United States Government.
The Ottawa meeting brought together representatives from Australia, Brazil, Chile, South Korea, Japan, Kenya, Mexico, New Zealand, Norway, Singapore, Switzerland and the European Union, as well as the host, Canada. At the end of the meeting, assistants agreed that the current situation of the WTO is not sustainable, and that it’s necessary to take actions as fast as possible to avoid taking a step back in terms of free trade, according to Reuters.
Delegates of the twelve countries and the European Union conclude that the increase in protectionism threatens the global trading system and affects directly WTO’s task.
Representatives reunited in Ottawa set a road map based on the unlocking of WTO’s dispute settlement system
The Ottawa reunion also set a road map based on the unlocking of WTO’s dispute resolution system, which is currently paralyzed by the slowness of the United States’ appointment of the organization’s Appellate Body members. In parallel, the country has continued to approve protectionist policies and renegotiating international trade agreements such as Tlcan, with Canada and Mexico, which has now been renamed Usmca.
Last September, the WTO shrunk its forecast for global trade growth to 3.9% in 2019, compared to the 4.4% upsurge released in April 2018. The organization pointed out trade conflicts and difficult markets conditions as the main triggers, as well as a most restrictive monetary policy and financial volatility.