EU Eyes Asia Trade Boost Amid U.S. Tariffs, Aiming for CPTPP Alliance

May 9, 2025
EU Eyes Asia Trade Boost Amid U.S. Tariffs, Aiming for CPTPP Alliance
  • This initiative is part of a broader EU strategy aimed at navigating a changing international trade landscape and reinforcing its economic resilience.

  • European Commission President Ursula von der Leyen has expressed a desire to leverage current trade disruptions to enhance collaboration within the World Trade Organization (WTO) and explore structured cooperation with the CPTPP.

  • China is also looking to join the CPTPP, viewing the current U.S. trade policies as an opportunity to expand its influence in the Asia-Pacific region.

  • The European Union (EU) is actively seeking to strengthen its trade relationships with Asia, particularly in light of recent U.S. tariffs announced in April 2025.

  • A key focus for the EU is the potential formation of a new trade alliance with countries involved in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which could offer a third option for nations hesitant to align solely with the U.S. or China.

  • Such an alliance could represent 30% of the world's GDP and nearly 900 million people, potentially establishing a new hub of global trade independent of U.S. and Chinese influence.

  • If successful, this partnership could expand the CPTPP's coverage to around 30% of global GDP, serving as a counterbalance to U.S. isolationist policies.

  • The Asia-Pacific region is crucial in global trade, being central to major trade routes and possessing substantial purchasing power, which has attracted competitive interests from the U.S., EU, and China.

  • Key EU leaders are advocating for deeper economic collaboration with Asia-Pacific countries to diversify trade partnerships and reduce reliance on traditional allies.

  • Despite the EU's increasing engagement, experts note that the U.S. still wields considerable influence in the region, particularly due to its dominance in energy and food exports.

  • The CPTPP, established in 2018, includes twelve member countries and represents approximately 15% of global GDP, recently expanding to include the UK, with South Korea considering membership.

  • This enhanced cooperation aims to create a space for countries advocating for multilateral trade agreements amid the ongoing U.S.-China trade war.

Summary based on 3 sources


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