EU strengthens its arsenal in the face of Trump's WTO blockade

The European Union reached an agreement on Wednesday to strengthen its trade arsenal and will be able to decide on sanctions despite the blocking of the World Trade Organization (WTO) by the US administration of Donald Trump.

Read also: Green light from the WTO for new European customs duties on American products

This agreement, reached between the European Parliament, the Member States and the Commission, “

”EU Executive Vice-President Valdis Dombrovskis said in a statement.

The United States, which is very critical of the WTO, has refused for several months to appoint new judges to the appellate court of the Dispute Settlement Body (DSB), responsible for settling trade disputes.

For lack of sufficient judges, this court of appeal has been paralyzed since December 2019, which prevents the proceedings before the WTO from coming to an end.

As long as this body cannot perform its functions, its members have the possibility of avoiding a binding decision simply by appealing.

However, the European regulation in force until now only allows the EU to put in place trade countermeasures (such as tariffs) when all the procedures before the WTO are completed.

By revising this regulation, the EU is allowing itself to take sanctions, even if the WTO does not give a final ruling on appeal.

"

" Dombrovskis stressed.

Read also: The WTO, hated one day, praised the next day by Trump

The new text will also allow the Commission to take countermeasures when a partner "

", explains the Council of the EU, which represents the member states, in a statement.

The compromise reached on Wednesday must now be approved by member states and by a vote of MEPs.