Reference News Network July 2 report: The Belgian "Politico Europe" website published an article titled "Europe's New Trade Strategy is 'Goodbye Trump, Hello Asia', but Will It Work?" on June 30. The author is Jacob Weitzman. The article excerpts as follows:

Europe has gradually grown tired of US President Trump's trade threats and is exploring a bold initiative, shifting its focus from the West to the East, seeking partners willing to act according to the rules.

Trump's unilateral and arbitrary tariff hikes—potentially increasing to 50% if EU and US negotiators fail to reach a trade agreement from July 9—have tested the patience and resolve of EU Commission President Ursula von der Leyen. What was her response? She turned to cooperate with the members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). CPTPP is a Pacific-centered trade group that includes like-minded countries such as Japan, Australia, Canada, and Mexico.

The EU and the CPTPP member states have a total of 39 countries, accounting for 30% of global trade volume. Supporters believe that forming a "voluntary alliance" could be the first step toward resetting the international trade order and moving beyond the institutional paralysis of the World Trade Organization (WTO).

Von der Leyen said after the EU summit on June 26 that the plan would "show the world that free trade with many countries based on rules is possible." However, how can this "voluntary alliance" work?

Senior trade negotiators Tim Grose, Steve Friesen, and John Clarke suggest one idea is to pre-commit to maintaining existing multilateral trade rules.

Grose was the former New Zealand Minister of Trade, Friesen served as Canada's Chief Trade Negotiator, and Clarke recently held the position of EU Senior Trade Negotiator. They said: "This would send a huge signal to Washington that a large part of the global economy, including almost all of America's traditional close allies, still commit to upholding the rules-based system."

During Obama's administration, the US had an opportunity to join the CPTPP, which was then called the Trans-Pacific Partnership (TPP). But Trump chose to withdraw before the agreement was finalized in his first term in 2017.

Ignacio García Bercero, the former EU Chief Trade Negotiator, believes that this potential partnership should not close the door to the US and should not be seen as a move against Trump. However, "if the US does not believe that rules are the solution to these issues and is therefore not prepared to join, other countries can only continue without the US."

As a new member of the CPTPP, the UK has also taken the lead in welcoming efforts to strengthen relations between the EU and these two potential partners. UK Prime Minister Starmer released the UK's first trade strategy after Brexit on June 26, saying: "I have been discussing with leaders of Japan, Singapore, Australia, New Zealand, and Canada how we in the UK can conduct trade with them more conveniently and better."

All of these countries are CPTPP members, and the UK joined last December. The Starmer government has been open to the idea of the EU and CPTPP cooperating. If the EU and CPTPP can establish a new community of values and interests, this community could serve as a foundation to address trade challenges accumulated over years by the WTO—the Geneva-based trade club that operates on a consensus basis, where its largest member, the US, is unwilling to cooperate.

Grose, Friesen, and Clarke said: "Everything must start with countries that can take more decisive action outside Geneva. In the medium term, we believe this group can become a key point for setting new rules and building a trade system that brings continuous growth and prosperity for the people of these countries."

Von der Leyen has already shown goodwill to the leaders of CPTPP member states. After meeting with New Zealand Prime Minister Chris Hipkins this week, she issued a joint statement expressing both sides' support for "starting dialogue between the EU and CPTPP as soon as possible." An EU official said a ministerial meeting is planned for July. (Translated by Hu Guanghe)

Original: https://www.toutiao.com/article/7522401779259113984/

Statement: The article represents the personal views of the author. Please express your opinion by clicking on the [up/down] buttons below.