The WTO Between Two Worlds: Strategic Choices for EU Action

The World Trade Organization (WTO) is navigating two parallel worlds: one
in which members work to reform and modernise the institution, and
another in which the very foundations of the multilateral trading system
are being dismantled. This policy brief examines the state of WTO reform
across key pillars — dispute settlement, rule-making, and institutional
design — and considers what this turbulent landscape means for Europe.
To best operate within these two worlds, the EU should pursue a dual
strategy: defending the WTO’s core functionality through pragmatic shortterm reforms while simultaneously building coalitions to advance modern
trade rules both within and beyond the WTO framework.