Rule-based trade order that Trump shook The EU seeks a breakthrough by joining the CPTPP South Korea and China also applied for participation and “largest trade map” without the U.S. when it is completed pending
사진 확대 The European Union (EU), the world’s single largest economy, is seeking to rally “super large” forces as the U.S. administration’s tariff war has rapidly changed the global trade order. It is the Trans-Pacific Partnership (CPTPP), a trade agreement between Indo-Pacific countries.
If the EU joins the CPTT, a mega free trade agreement (FTA) in the Indo-Pacific region, the world’s largest new trade alliance will be launched, excluding the United States.
The British Financial Times (FT) reported on the 3rd (local time) that the EU is considering joining the CPTPP based on high-level officials and diplomats from the EU Commission.
There has been no full-fledged review, but as President Trump caused a upheaval in the global trade order with unilateral mutual tariffs, the plan is being discussed to prevent the collapse of the order from the United States and secure an economic playground where more European products can be sold.
An EU Commission official told the FT that the review was “still in its early stages” but that discussions were moving towards a space to review structured cooperation between CPTPP member states and the EU.
If CPTPP and the EU economy make a big decision to eliminate barriers to goods and services, a super-large free trade zone will emerge that will make up about 30% of the world’s gross domestic product (GDP).
The world’s largest ‘trade map’ of the mixture of developed and emerging economies without the United States is drawn.
Launched in 2018 by Japan, CPTPP is led by 12 countries, including Australia, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom, Vietnam, and Brunei. We aim to eliminate 99% of tariffs on goods.
The EU already has bilateral trade agreements with nine of these member states, but it is a country that wants to participate in CPTPP further, making “China” a more attractive option for the EU as it is on the waiting list.
Among the member states, New Zealand, Canada, and Singapore are currently active supporters of EU participation. On top of that, Japan is also expressing a ‘quiet support’ position.
As Australia, the chair of the CPTPP, recently wrapped up its general election this year, the EU is expected to discuss the resumption of bilateral FTA negotiations with Australia, while also seeking to find a point of contact for CPTPP participation.
In addition, the EU is keeping an eye on the possibility of detailed discussions at the Asia-Pacific Economic Cooperation (APEC) trade ministers’ meeting to be held in South Korea this month.
사진 확대 Group of applicants wishing to join the CPTPP between CPTPP and RCEP member states. Along with China, which has applied for participation in 2021 and is waiting, Korea is classified in the interest participation group.
Cecilia Malmström, a former EU trade commissioner, said, “If we look at the slow movements of the EU over the past three months (since Trump took office), efforts to protect the rule-based trade order have been urgently made,” adding, “In order for (CPTPP membership) to take place, it must proceed fairly quickly within this year.”
In this regard, the EU is considering resuming a comprehensive investment agreement with China that has been suspended in the past after the Trump tariff war. The reason why normalization of relations with China has become urgent for the EU is not only the effect of buffering the export market to the U.S., but also the awakening of the U.S. “European passing” during the discussion on the ceasefire in the Ukraine war.
It is judged that strengthening relations with China is essential geopolitically to check the Russian threat in Europe.
Meanwhile, attention is being paid to whether Korea, along with China, will also become active in its move to join the CPTPP. In 2022, four years after the CPTPP took effect, South Korea decided to push for membership. In particular, with the emergence of the Trump administration, there is a growing need among experts at home and abroad to sign up to mitigate the economic shock.
Yukiko Fukagawa, a professor at Waseda University, a representative Jihan-pa Japanese economist, said at an academic event in Korea late last year, “The global economy is entering a negative cycle, with economic security strengthened and a geopolitical crisis occurred. If we strengthen cooperation between Korea and Japan, we can exert a great power in overcoming this trend,” he said, asking for participation in the CPTPP.
The advice was that Korea should pursue a new trade strategy that fosters various cooperation with various countries as the world’s middle power (middle power) like Japan, rather than focusing on the “quantum FTA,” which has been Korea’s strength so far.