Forcing China on trade with illegal action will not work: EU's Malmstrom

BRUSSELS (Reuters) - The United States and the European Union should work together to reform the World Trade Organization and illegal action will not work to solve issues in international trade, EU Trade Commissioner Cecilia Malmstrom said on Thursday

“Let us not forget that there are indeed problems in the international trading system, that we can agree upon. However, U.S. measures on steel and aluminum will not solve the overcapacity problem in China,” Malmstrom said.

“Trying to force the hand of China with illegal action will not work, and the U.S. may end up breaking the multilateral system,” she said.

“We need to come together to reform and strengthen the WTO,” she added.

Reporting by Robert-Jan Bartunek and Philip Blenkinsop