Canada working on WTO reform: Sources

Canada is working on a project for reform of the World Trade Organisation (WTO) and aims to organise international talks on the subject next month, Canadian sources said as U.S pressure on the body mounts.

President Donald Trump threatened late last month to pull his country out of the WTO, which arbitrates trade disputes, if it does not "shape up."

He has previously criticized the WTO's dispute settlement system as being unfavorable to the U.S, although the body most often rules in favor of the United States when Washington brings cases before it.

"We recognize the challenges at the heart of the WTO and believe it is necessary to find the means to do the necessary work to advance reforms," a spokesman for Jim Carr, Canada's Minister of International Trade Diversification, told.

"This work has started," he said, adding that "the WTO can overcome some of its historic challenges and make progress."

A small group of like-minded trade ministers will gather in Ottawa October 24-25 "to discuss WTO reform," a Canadian government source told, requesting anonymity given the sensitivity of the discussions.