EU will retaliate against countries that do not comply to WTO rulings

The European Union will use countermeasures in trade disputes when arbitration is blocked

The European Parliament adopted new rules allowing the European Union (EU) to use countermeasures in trade disputes when arbitration is blocked.

The strengthening of the enforcement regulation will enable the EU to protect its trade interests against partners acting illegally.

From now on, the EU can introduce countermeasures when it obtains a favourable ruling from a dispute settlement panel of the World Trade Organisation (WTO) or in bilateral and regional agreements, when the other party fails to cooperate on the adjudication of the dispute.

As the WTO Appellate Body is no longer able to fulfil its function as last-instance dispute arbiter due to excess vacancies, the EU had been left without the means to enforce trade rules when cases are blocked in the WTO process. The new rules are part of efforts to have better EU tools to promote compliance and enforce EU trade agreements in an altered geopolitical context.