Canada rallies 40 nations in new trade bloc

Nearly 40 countries are quietly building a new global trade alliance as frustration grows with the confrontational policies of US President Donald Trump.

Led by Canadian Prime Minister Mark Carney, the coalition brings together the European Union and members of the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership bloc. Diplomats say the group is exploring sweeping reforms to global trade rules — and may even build an alternative system if current institutions fail.

A quiet revolt against Washington’s trade strategy

The initiative reflects growing unease among US allies who say Washington’s tariff policies and institutional blockades have weakened the global trading order.

At the centre of the dispute is the crisis at the World Trade Organization, whose dispute settlement system has been paralysed after years of US opposition.

Trade analysts say the impasse has forced major economies to consider new frameworks to enforce rules and resolve disputes outside the WTO system.

Irony at the heart of the crisis

Some experts argue Trump’s policies may unintentionally accelerate the creation of a new trade architecture.

John Ferguson of Economist Impact said the breakdown of the current order could push major economies to construct a more resilient system.

In that sense, he suggested, the president who disrupted the rules-based system might also become the catalyst for its replacement.

Talks target digital trade and supply chains

Negotiators from Europe and Indo-Pacific economies are now discussing deeper cooperation in areas ranging from digital trade rules to supply-chain resilience and investment standards.

Diplomats say a joint declaration on WTO reform is already being drafted, though negotiations over the final language are ongoing.

The goal, officials insist, is not necessarily to abandon the WTO — but to create a parallel structure capable of functioning if it remains paralysed.

Middle powers step into the vacuum

Canada has positioned itself at the centre of the effort, bringing together what officials describe as “middle powers” seeking stability in an increasingly fractured global economy.

Analysts say the initiative reflects a strategic shift as countries try to reduce reliance on US leadership in trade governance.

If the coalition succeeds, the implications could be profound — potentially reshaping global commerce and weakening Washington’s influence over the rules that govern it.

Canada forms anti-Trump alliance as nearly 40 countries unite