Trans-Pacific Partnership agreement: Work with EU to protect free trade

Editorial

14:30 JST, April 29, 2025

The high tariff policy of the administration of U.S. President Donald Trump has thrown the global economy into turmoil, and the free trade regime that has supported postwar development is in crisis.

Japan should work with the European Union and others to expand connections protecting free trade among countries, based on the Trans-Pacific Partnership agreement.

Countries and regions that have relied on the United States as a major export market are at a historic turning point, forced to rethink their trade strategies in response to Trump’s tariffs.

Prime Minister Shigeru Ishiba’s agreement with the Vietnamese prime minister during his visit to that country to strengthen a multilateral free trade regime reflects the two leaders’ shared understanding of the issue.

It is notable the EU side is also actively seeking partners to collaborate with. European Commission President Ursula von der Leyen held telephone talks with the prime ministers of Singapore and New Zealand, both TPP member countries, this month.

Japan has historically played a leading role in the TPP. Even if it is difficult for the EU to join the TPP under the current circumstances, with the framework’s high rate of tariff elimination, it is important to strengthen cooperation with the EU to enhance the significance of the TPP’s existence.

The TPP, which includes Vietnam and Mexico, expanded to 12 countries last year with the addition of the United Kingdom. Combined with the EU, it would become a huge economic zone with a population of over 1 billion, accounting for one-third of the world’s gross domestic product.

It can be expected to develop as a core element in protecting free trade.

In the United States, where the middle class is in decline, an inclination toward protectionism is likely to continue. Reducing dependence on the United States and promoting economic development are common challenges for Japan and Europe. Closer cooperation between TPP members and EU countries will also help strengthen their negotiating power against the high tariff policy of the United States.

TPP member countries will soon start to review the agreement for the first time since it went into force in 2018. It is because they need to address new issues although the agreement boasts a high rate of tariff elimination and includes many advanced elements such as protection of intellectual property.

The focus will be how to strengthen supply chains.

The stable procurement of rare earths and other materials for industrial products is becoming increasingly important. At the same time, “economic coercion,” such as restricting imports and exports to force other countries to accept specific demands, as seen in actions by China, is becoming more prominent.

To address supply chain disruptions and economic coercion, TPP countries should aim to cooperate with the EU in establishing a framework for the flexible supply of materials among member countries.

China, Taiwan, Costa Rica, Ecuador and Indonesia have applied to join the TPP. It is a basic premise that countries that engage in coercive behavior toward other nations will not be admitted. If China seeks to join the TPP, strict adherence to this requirement is an absolute condition.

(From The Yomiuri Shimbun, April 29, 2025)