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WTO is at a 'critical junction' and requires deep reforms, EU and CPTPP claim

The World Trade Organization is at "a critical juncture", and it needs deep reforms, said the European Union on Friday.

On Friday, the EU and CPTPP, which includes 12 countries including Australia, Japan Canada, Mexico, Malaysia, and Britain, met in Cameroon at the WTO Ministerial Conference.

In a joint statement, they stated that "the WTO is at an important juncture amid?heightened tensions within the global trading system."

Both groups of representatives agreed that "urgent reform" was needed for the WTO.

The WTO said that they want to "enhance" cooperation among members who share similar views in order to improve the global trading system. They also plan to work together on areas of mutual interest, such as trade diversification and supply-chain resilience.

Both expressed concern about "market distortion practices", "oversupply" and "economic coercion".

In the past year, the United States imposed tariffs on the EU and CPTPP members.

In response to concerns over China, the EU has recently called for a revision of the WTO’s Most Favored Nation Principle, which requires trading countries to treat each other equally.

Maros Sefcovic, EU Trade Commissioner, recently said that the bloc should condition low-tariff market access for Chinese firms on the opening of the Chinese economy to European companies.

Benjamin Dousa, Sweden's trade minister, said earlier that if the WTO negotiations in Yaounde fail to make progress the EU-CPTPP may look to expand their cooperation and forge agreements among willing members. (Reporting and editing by FriederikeHeine and Hugh Lawson, with Olivia Le Poidevin)

(source: Reuters)