Full Breakdown
German Chancellor Friedrich Merz Calls for a New Rules-Based Trade Order in Asia
By Drooid · · How we work
In this breakdown
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Core Event: Call for a New Global Trade Framework
During the closing day of a week-long Asia tour, German Chancellor Friedrich Merz addressed the Asia-Pacific Conference of German Business in Seoul. He urged the European Union to take a leading role in shaping a rules-based economic order that can counter the growing rivalry between the United States and China. Merz emphasized that Europe is prepared to cooperate with Asian economies to develop free-trade partnerships that go beyond bilateral deals.
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Background & Context
The push for a new trade architecture comes as tariffs, “technological decoupling” strategies, and competition for critical raw materials reshape global commerce. The United States withdrew from the original Trans-Pacific Partnership (TPP) in 2017, leaving the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as the primary multilateral framework linking the Asia-Pacific and the Americas. The United Kingdom remains the sole European signatory to the CPTPP outside the EU bloc. Merz’s remarks in Singapore earlier in the tour called for an EU-CPTPP free-trade agreement, positioning the EU as a counterweight to unilateralism and “autocratic power politics.”
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Official Statements & Responses
Merz told the Seoul audience that the EU is ready to lead in crafting a better deal for Asian partners who feel pressure from a destabilized trade environment. He warned that when supply chains become “political pawns” and access to key technologies is obstructed, regional growth and security are jeopardized. South Korean Prime Minister Han Seong Sook added that German firms are using Korea as a central hub to expand their presence across the Asia-Pacific region, underscoring the practical relevance of deeper EU-Asia cooperation.
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Verbatim Quotes
- “Competition between the US and China is ramping up. Tariffs, technological decoupling strategies and a tough race for critical raw materials and new technologies are fundamentally changing the rules of our global economy,” — German Chancellor Friedrich Merz
- “We are resolutely joining forces against unilateralism, autocratic power politics and violations of international law,” — German Chancellor Friedrich Merz
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Why It Matters
Merz’s call signals a strategic shift for the EU toward more proactive engagement with Asian markets, aiming to safeguard supply-chain resilience and promote fair competition. By advocating for an EU-CPTPP partnership, the EU seeks to offer alternatives to bilateral arrangements that may be vulnerable to geopolitical pressure, potentially reshaping trade dynamics in the Indo-Pacific and influencing the broader global economic order.