Canada and Europe make deal to work around blocked World Trade Organization

Jul 25, 2019 | 10:33 AM

OTTAWA — Canada and the European Union have formalized a deal to set up a substitute appeals body for trade disputes, working around the United States’ refusal to allow new appointments to one that already exists at the World Trade Organization.

The WTO’s Appellate Body is down to three members from its normal seven and two of the remaining members’ terms expire in December.

The U.S. has been blocking new appointments in an effort to force other reforms at the trade organization, which President Donald Trump has said was set up to benefit everybody except the U.S. and which he’s threatened to pull out of altogether.

If the WTO’s appeals body can’t handle trade fights, Canada and European countries have agreed to take their appeals to three-member panels made up of people who used to sit on the Appellate Body.