Trump may have breathed new life into the World Trade Organization

President Trump once called the World Trade Organization “a total disaster.” He may now be giving it a reason to matter again. 

Trump’s tariffs are raising the cost of economic dependence on the United States, encouraging trading partners to build alternatives with one another. Canada is explicit about diversifying its trade and is pursuing deeper economic integration with Europe. Australia says it is watching Canada closely while pursuing diversification of its own. 

That creates a problem. If countries respond to American unpredictability by constructing their own networks of preferred suppliers, critical minerals partnerships, digital agreements and security relationships, the result could be a more fragmented global economy. 

That is not just a threat to the World Trade Organization; it is an opportunity to reinvent it. It should shift from originating trade agreements to aggregating agreements negotiated elsewhere. Canada and Europe show why. 

Canada and the European Union already have a Comprehensive Economic and Trade Agreement. Now they are contemplating deeper integration piece by piece. European Commission President Von der Leyen has proposed an “Alliance for the Future” encompassing technology, defense production, energy, critical minerals, batteries, artificial intelligence and economic security. 

This is not a new comprehensive trade agreement. It is integration à la carte. Canada does not have to settle agricultural disputes before integrating defense procurement. Critical minerals cooperation need not await a grand bargain on services. Countries can negotiate where agreement is possible and leave harder issues for later. 

Now imagine that Australia, Japan and others do the same. Canada and Europe develop one critical minerals........

© The Hill