ICC statement on EU proposals to strengthen global trading system 

Following the conclusion of European Council summit discussions on the future of the multilateral trading system, ICC Secretary General John W.H. Denton AO said:

“It’s very welcome to see EU leaders starting to engage on the question of how to preserve and progressively strengthen the rules-based trading system. This is, without doubt, a mission critical issue for the global business community — and one deserving the highest level of political attention. 

“We believe that the immediate focus of discussions between the EU and CPTPP members should be on practical steps to stabilize the global trading system. The obvious starting point for this would be an agreement to harmonize rules of origin requirements between the two blocs. 

“That might sound modest on paper — but reinforcing and simplifying the underpinnings of trade would provide a huge boost to business confidence.

“More broadly, it’s important that we don’t reduce the discussion on necessary reform of the trading system to one of institutional form. 

“The focus needs to be squarely on outcomes: preserving rules-based trade, keeping markets open and progressively revitalizing global trade governance in line with the realities of 21st century commerce. 

“In doing so, governments should be mindful of the fact that around 80% of trade today remains backed by World Trade Organization rules. Despite its many shortcomings, the WTO continues to play an essential role in facilitating millions of commercial transactions — day in, day out. 

“President von der Leyen and Chancellor Mertz very rightly pointed last night to the importance of having a functioning system to resolve trade disputes. In a EU-CPTPP context it’s entirely possible this could be achieved by way a firm commitment to utilize the established workaround to the WTO’s appellate body — the Multi-Party Interim Appeal Arbitration Arrangement. 

“We encourage CPTPP members that have not yet signed up to the MPIA to do so without delay. Given the economic imperative to provide renewed certainty to the business community, this is not the moment to be reinventing the wheel — we need to make full use of existing mechanisms to bring stability and predictability to global trade.”