Latest news with #CPTPP
NHK
15 hours ago
- Business
- NHK
Von der Leyen floats idea of EU-Asia trade cooperation
European Commission President Ursula von der Leyen has floated the idea of cooperating with Asia to promote rules-based free trade. She says it could serve as the basis for redesigning the World Trade Organization. Von der Leyen spoke on Thursday after a European Union summit. She referred to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, describing the key trade pact as "most attractive and interesting." She also said Asian nations want structured cooperation with the EU, and the EU "wants the same." US President Donald Trump's "America First" policy and sweeping tariffs have put the global economy at a crossroads. Von der Leyen's comments suggest the EU may be seeking to lead a free-trade system that does not include the United States. But one EU source says she is more likely posturing as a way to gain leverage over the Trump administration.
Japan Today
16 hours ago
- Business
- Japan Today
EU's Pacific alliance would not replace WTO, EU officials say
FILE PHOTO: European Commission President Ursula von der Leyen attends a press conference on the day of the European Union leaders summit in Brussels, Belgium June 26, 2025. REUTERS/Yves Herman/File Photo By Philip Blenkinsop The European Union's plan to cooperate with Pacific Rim countries would aim to overcome some of the difficulties of the World Trade Organization, but would not seek to replace it, EU officials said on Friday. The WTO is struggling for relevance as geopolitical tensions rise and the United States imposes unilateral tariffs, flouting its WTO commitments. European Commission President Ursula von der Leyen told reporters late on Thursday that "structured cooperation" with the 12-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership , or CPTPP, could be thought about "as a beginning of redesigning the WTO". German Chancellor Friedrich Merz went further, saying the new trade grouping could gradually replace the WTO. On Friday, however, EU officials said the plan did not entail setting up a rival to the WTO. Instead, the Commission said cooperation with the CPTPP was a way to advance a modern, rules-based trading system when the WTO urgently needs reform. "We are working closely with like-minded partners, including CPTPP countries, to advance meaningful, rules-based reform that upholds fair and open global trade," it said in a statement. One area of work could be setting up a system to settle disputes, required because the United States has blocked appointments to the WTO's Appellate Body, the ultimate arbiter on global trade. The EU-CPTPP cooperation would also be designed to send a political signal that a large number of countries support open and rules-based global trade. The CPTPP is a 12-nation free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which Britain joined late last year. "We are strong supporters of the WTO, which plays a vital role," a spokesperson for Britain's trade ministry said, highlighting a trade strategy launched on Thursday which said CPTPP could be a platform "to encourage deeper trading relationships between countries and groupings committed to liberal rules-based trade." "We are working with other CPTPP members to help set up discussions with other major trading blocs, including the EU, on ways to further promote free and fair global trade," the spokesperson added. © Thomson Reuters 2025.
Int'l Business Times
a day ago
- Business
- Int'l Business Times
World Leaders Conspire to Form Trade Org Without US As Trump Keeps Threatening Countries With Tariffs
As President Donald Trump threatens to hit European imports with tariffs as high as 50%, world leaders are quietly working to form a new global trade order that excludes the U.S. With a July 9 deadline looming for a new EU-U.S. deal, Trump has warned that punitive tariffs will return if the bloc doesn't agree to his terms. In response, European Commission President Ursula von der Leyen has proposed a bold counter. The proposal would mean uniting the EU's 27 countries with the 12-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes the UK, to launch a new trade alliance without the United States, according to Politico. "CPTPP and the European Union is mighty," von der Leyen said at the EU leaders' summit, adding that the bloc could replace the WTO and decide later whether to admit the U.S. The idea has public backing from German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk, who likened the approach to Trump's own erratic style. "We need to be similar to our partners in some sense," Tusk said. Privately, EU leaders reportedly admit they are now scrambling to craft a face-saving deal with the U.S. before the deadline to avoid sweeping tariffs. Negotiations are expected to continue into next week. However, the bloc remains divided. Some leaders want to secure a basic agreement quickly to shield vulnerable industries like chemicals and steel, while others remain reluctant to concede to Trump's demands. French President Emmanuel Macron, once defiant, now concedes, "10% [tariffs] will be 10%." Originally published on Latin Times
Euronews
a day ago
- Business
- Euronews
Let's create a new World Trade Organization
At Thursday's EU summit in Brussels, European leaders discussed the possibility of overhauling the WTO's institutional framework, including its stalled dispute resolution mechanisms, to better reflect the current global trade landscape. 'The WTO hasn't worked for years,' German Chancellor Friedrich Merz said in a press conference following the summit, referencing persistent dysfunction under both the Trump and Biden administrations. Commission President Ursula von der Leyen presented leaders with different options of trade deals, labelling as the most attractive a closer cooperation between the EU and members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a regional trade pact of 11 Pacific Rim countries and the UK. She introduced the initiative as a potential first step toward reshaping the global trade order. 'I said that we can think about this as the beginning of redesigning the WTO—of course, understanding what should be reformed positively within it,' von der Leyen told reporters after the summit. She stressed the importance of learning from the WTO's shortcomings and showing the world that 'free trade based on rules' remains achievable with a wide group of willing partners. 'This is a project we should truly engage in. CPTPP and the European Union—that's my team,' she said, adding that the EU must take the lead in managing this initiative. Asked whether the United States should be involved, von der Leyen replied: 'As far as I understand, the Americans left the CPTPP at a certain point.' This is not the first attempt to circumvent the WTO's paralysis. As a stopgap measure, 57 WTO members, including the UK, Paraguay, and Malaysia, have joined the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), a mechanism that replicates the WTO Appellate Body's functions for participating members. However, the MPIA covers only 57.6% of global trade and does not address the broader institutional crisis. The WTO has been effectively paralysed since December 2019, when the US began blocking appointments to the Appellate Body, rendering the two-tier dispute settlement system non-functional. Major trade negotiations—such as those on eliminating harmful fisheries subsidies and reforming agricultural rules—remain stalled due to entrenched positions from key members, including the US, China, Japan, and the EU itself. With few signs of resolution, the WTO's future relevance is increasingly being called into question.
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First Post
a day ago
- Business
- First Post
Von der Leyen hopes for EU-US trade deal but warns of challenges amid Trump tariffs
EU Commission President Ursula von der Leyen said the EU is ready for a trade deal with US President Donald Trump but is prepared if it falters. She maintained that the EU is analysing the latest US negotiating document, which she received on Thursday. read more The European Commission President, Ursula von der Leyen, said that the regional body is ready for a trade deal with US President Donald Trump. However, she warned that the body should be prepared if a deal falters. Von der Leyen maintained that she was analysing the latest US negotiating document, which she received on Thursday. 'Our message today is clear, we are ready for a deal,' she told reporters after briefing EU leaders at a summit in Brussels. 'At the same time, we are preparing for the possibility that no satisfactory agreement is reached … and we will defend the European interest as needed. In short, all options remain on the table," the EU Commission President said in a statement. STORY CONTINUES BELOW THIS AD It is pertinent to note that Von Der Leyen leads the commission, responsible for trade on behalf of the EU's 27 member states. Trump has threatened to impose 50 per cent tariffs on all EU goods from 9 July unless the two sides reach a deal. It is pertinent to note that most EU goods already face 10 per cent tariffs in the US. Meanwhile, the Trump administration also imposed levies of 25 per cent on cars and car parts and 50 per cent on steel and aluminium. Amid the looming Trump tariffs, Von der Leyen also floated a 'beginning of redesigning' the World Trade Organisation (WTO). She also noted that the Asia Pacific CPTPP bloc, which also includes the UK, was interested in 'structured collaboration' with the EU, which wanted the same. 'We can think about this as a beginning of redesigning the WTO … to show the world that free trade with a large number of countries is possible on a rules-based foundation,' she averred. As the Trump deadline nears, different countries and the EU are taking different initiatives to save themselves from the tariffs. It'll be interesting to see if an EU-US trade agreement will be on the cards.
