Partnership with Asia-Pacific nations could boost bargaining power: Experts

Analysts and business leaders have welcomed the European Union's consideration of a new trade alliance with the Asia-Pacific, calling it a necessary step as the bloc faces pressure to either accept a quick US trade deal or risk a longer dispute to secure better terms.

With a July 9 deadline from the United States looming, the EU is exploring an alliance with Asia-Pacific countries that could reshape global commerce.

European Commission President Ursula von der Leyen floated the idea on Thursday of the EU partnering with the 12-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, to form a new global trade initiative — without automatic US participation, Politico reported.

READ MORE: Von der Leyen says EU will be ready if US trade talks break down

Speaking at the end of an EU leaders' summit in Brussels on Friday, von der Leyen said such a plan would "show to the world that free trade with a large number of countries is possible on a rules-based foundation".

"This is a project where I think we should really engage on, because CPTPP and the European Union are mighty," she said.

Jian Junbo, director of the Centre for China-Europe Relations at Fudan University in Shanghai, said EU leaders are facing significant pressure to make a final decision as the deal deadline approaches.

"The US is both the biggest investment destination and trade partner of the EU, and the latter just cannot afford to lose the former," he told China Daily.

"So, the EU's cards from the very first moment have been rather limited. It had proposed a zero-tariff policy but that was not what the US wants — instead, Washington pursues trade balance that would require a major restructuring of bilateral trade."

At the EU leaders' meeting in Brussels on Thursday, Ireland's Prime Minister Micheal Martin told reporters: "Every effort has to be made to get a landing zone that we can live with."

Cheng Hongliang, a researcher at the China Institutes of Contemporary International Relations, said EU-US relations are complex, with trade being just one area where the US might exert comprehensive pressure.

"At the just-concluded NATO summit in The Hague, European members agreed to raise the defense spending to 5 percent of their GDP, which should be considered as a concession to the US," he said. "But the implementation will take a rather long time and it will be difficult to reach a long-term agreement."

By the end of Thursday's meeting, the EU had yet to announce whether it would accept US terms for a quick deal. Cheng said the late-night deliberations suggest EU members struggled to reach consensus on the challenging tariff negotiations.

Strategic autonomy

Bernard Dewit, chairman of the Belgian-Chinese Chamber of Commerce, said Europe must prioritize unity and strategic autonomy amid rising geopolitical and trade tensions.

"While short-term compromises may ease tensions, the EU could focus on reinforcing its industrial competitiveness and diversifying its partnerships globally, including with China, to reduce dependency and better defend its long-term economic interests."

Lai Suetyi, a researcher at the Center for European Studies at Guangdong University of Foreign Studies, said that at least presently, it is a smart move for the EU, which sees little room to secure an acceptable deal by the July 9 deadline.

ALSO READ: EU struggles for trade deal with US by July 9 amid tariff tensions

"It tries to take a proactive role instead of being passively bullied by US President Donald Trump as it has been thus far," she said.

"Instead of following Trump's tariff game, the EU now initiates a cooperation with the CPTPP. The EU feels more comfortable to play its old game of international rule-setting and multilateralism.

"Despite the uncertainty of the result, the EU has at least turned the tables to be in a slightly stronger bargaining position against Trump."

Contact the writer at zhangzhouxiang@chinadaily.com.cn