According to a report by the Financial Times (FT), in response to the increasingly unstable multilateral trading order, the European Union has taken its boldest move to date, proposing to grant World Trade Organization (WTO) members more freedom to raise tariffs.

This proposal means that the 'Most Favored Nation' (MFN) principle, which requires WTO member countries to treat each other equally, will no longer be strictly adhered to. For Brussels, which has long firmly defended this principle, this marks a significant shift in its stance.

EU Trade Commissioner Maroš Šefčovič explicitly stated in an article written for the Financial Times: 'We need to have an open discussion about the link between MFN status and the principle of reciprocity, while fully considering the actual level of market openness among member states, their commitments to fair competition and transparency, and their changing weight in global trade.'

Šefčovič made these remarks just before a meeting of trade ministers at the World Economic Forum in Davos on Thursday. This meeting will focus on how to reform the WTO in preparation for the upcoming annual ministerial meeting to be held in Cameroon in March.