The Middle-Powers Will Build a New Global Trading Organization
One Essentially Immune From Threats By the U.S.
Political Editorial Opinion
The United States no longer controls international trade.
It’s simply a fact.
The US under Trump has, by his actions, created the conditions for the middle powers and lesser powers to bond together to formally work towards the creation of a new Global Trade Organization, that will preclude the US from membership.
The world has awoken to Trump’s purely transactional method of trade. One could go one step further and not call it ‘trade’ at all. Trump’s tactics of imposing rather negotiating has worn itself into a hole in the fabric of trade, trust and willingness to actually trade with the U.S.
Yesterday, the BOE Report stated the following;
“Donald Trump’s Greenland tariff threat and U-turn last week may have been a watershed for the world’s middle powers. For them, rebooting globalization – with or without Washington — now looks far more realistic than it did during last year’s trade shock.”
I couldn’t agree more with their analysis.
And Canada’s Prime Minister, Mark Carney was the first to clearly and insightfully state what the future needs to focus on for middle-powers that alone are more susceptible to Trump’s (Miller’s) machinations and mental ‘brain farts’.
America’s retreat into protectionism and an aggressive trade posture, means that middle-powers, like Canada and the EU’s nations, the U.K., Korea, Japan, Australia, along with MERCOSUR and those additional nations that are members of the CPTPP or Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Chile, Malaysia, Brunei, Mexico, Peru, Singapore and Vietnam, seem determined to not follow the U.S.
Prime Minister Carney offered a clear alternative to Trump’s vision when he addressed those attending the World Economic Forum in Davos.
The message from Carney was eloquent, but simple.
“Even if the rules-based order is over, Canada and the middle-powers, can, and will act to offer a clear alternative”.
And by doing so a new Global Trade Organization can avoid being victimized by American hegemony, which has been Trump’s intended plan, as spelled out in Project 2025.
The document created primarily by Russell Vought, sounds more like the musings Adolf’s Mein Kampf, than it does a rational plan for the future.
And while the current federal administration in the U.S. believes it can threaten, pressure, and extort foreign nations to bow down and kiss the ring, like the Fellowship of The Ring, alliances are being formed that clearly suggest what Carney evinced that;
“When the rules no longer protect you, you must protect yourself.”
Canada will with all of its trusted partners, the other middle-powers of the world, will flex their considerable trade muscle and conversely step-up trade talks towards the formation of a completely new Global Trade Organization that will not include the United States.
European Commission President Ursula von der Leyen stated that;
“Diversification away from the United States — certainly in trade and potentially in financial assets — development of indigenous defense capabilities, and long-discussed agendas of reform are top of the agenda.”
The U.S. accounts for only 10-12% of world exports, while a new Global Trade Organization would account for more than 60%.
According to Anne Krueger, Senior IMF and World Bank official;
“In a formal organization such as this, the “GTO’s collective bargaining power would far exceed that of the United States, rendering Trump’s divide-and-rule tactics ineffective.”
America has been overtly threatening nations to fall into line.
The creation of a new GTO is a return shot across the bow of America’s current federal administration.
Krueger further wrote;
“More importantly, such unity might eventually persuade American policymakers to return to a rules-based cooperation.”
However, Canada’s Prime Minister is under no such illusions.
He has stated unequivocally, that the relationship that existed before Trump’s threats, tariff extortion and threats of military intervention mean that the ‘relationship is over’.
And as he stated, “we should not mourn what was’, and so we won’t, nor will the other middle powers who now seem determined and committed to Carney’s framework of building a new bloc as a countermeasure against the U.S. which will protect its members and make future threats from Herr Trump, simply irrelevant and toothless.
What Trump in his ham-handed approach to extort trade, has ensured that the movement by middle powers to diversify and emasculate the US threats against them will rapidly increase and solidify into an actual GTO that America will be precluded from entering.
American trade representatives from the U.S. Council on Foreign Relations are trying to ‘spin’ the effects of Trump’s arrogant and illegal trade actions, suggesting that Canada and the EU nations will not abandon the U.S.
But my question is this?
Why, if the middle-powers have decided that at least 88% of world trade falls outside the purview of the U.S., and at the same time America, without trade leverage is still threatening the world, should a new GTO not look to the future, rather than trust in any way, the nation that forced them to disengage?
As Carney has stated, “We simply won’t”.
And there is one specific piece of leverage that can, and will be employed if the threats by the U.S. continue.
As a group, the EU, Canada, Japan and very likely China will along with the other members of the GTO simply sell off their US treasuries, all 8.8 trillion of it, at once.
That would be the equivalent of a nuclear economic strike.
The world, and the middle powers that will form the GTO are not without leverage.
They simply believed that the US might be intelligent enough to realize that, as Trump stated to Zelensky, “You don’t hold all the cards.”
As the author of the article in Reuters stated;
“With colossal foreign exposure to U.S. assets – built up partly as a quid pro quo for sustained trade surpluses – and the White House’s barely concealed desire for a weaker dollar to aid its trade push, the rest of the world may muddle through. But it’s not a great picture for Wall Street.”
My sincere hope is that the GTO is formally created and a return to a rules-based system that excludes America, leaving it weaker, less arrogant and with a far greater exposure to trade actions taken in concert by the GTO’s membership, illustrate that the world needs less of America.
Far less.
https://boereport.com/2026/01/27/worlds-middle-powers-de-risking-from-america-mike-dolan/
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