How Washington's FTAs helped the U.S. in the Indo-Pacific

"Global trade cooperation is deteriorating, and the world is fracturing into two “values-based” trading blocs. While there could be positive upswings in our bilateral trade relations with China, the medium term trend is down. "China has changed, and the world with it. "Australian business needs to pay attention. Our East Asian partners, notably Japan and South Korea, have long spoken of the need for a “China plus one” (or more) business strategy – making sure trade and investment is diversified into other countries, as well. "Such diversification will be increasingly important in the years to come," writes Peter Draper, Professor, and Executive Director: Institute for International Trade | University of Adelaide, and Jean Monnet Chair of Trade and Environment, University of Adelaide. (via The Conversation Australia + NZ) #manufacturing #australianmanufacturing #auspol #china #internationaltrade #exports

🇨🇳 🇺🇸 🌍China pursuing a secure geoeconomic sphere: 🔶️ "China’s pursuit of an alternative trade system is primarily motivated by geopolitical factors, notably in response to U.S. initiatives aimed at excluding China from global supply chains." 🔶️ "Additionally, the U.S.-China trade war and efforts to “decouple” from China, along with initiatives to address excess capacity and unfair trade practices, underscore the necessity for China to construct alternative avenues. In other words, China needs to find more stable source of supply of raw materials and explore new markets for its manufacturing products." 🔶️ "Traditionally, the Global South primarily exported raw materials to the West, and then used the foreign exchanges they earn this way to import manufactured goods from the West. However, the BRI aims to shift this dynamic, thus enabling Chinese firms to obtain raw materials, tap into new markets, and absorb surplus manufacturing capacities." 🔶️ "This envisioned a hub-and-spoke system with China as its center hub and the Global South countries as spokes leading to China." 🔶️ "A China-led alternative trade system would significantly realign supply chains away from the West, centralizing them around China. This shift would make China the primary destination of exports and source of imports for the Global South." 🔶️ "Moreover, it could erode U.S. dominance, enticing more countries to pivot toward China. This is confirmed by recently released studies by the Singapore-based Institute of Southeast Asian Studies, which shows Southeast Asian countries favoring China over the U.S. as the partner for the first time." 🔶️ "Additionally, such a system could signal a transition from the Washington Consensus to the Beijing Consensus, prioritizing state-led economic models over laissez-faire approaches. In the long run, this could mark the end to the Western model based on free trade and free markets, and in turn reshapes the global geopolitical landscape." https://lnkd.in/gcEs_uJ6

𝗥𝗘𝗔𝗗: The Importance of the EU-Philippines Trade Deal "In March 2024, the European Union and the Philippines took a significant step forward by agreeing to resume bilateral negotiations focused on finalizing a long-awaited free trade agreement (FTA). This development marks a crucial moment, as talks had been stalled since 2017, during the presidency of Rodrigo Duterte, whose war on drugs campaign had drawn international scrutiny and prompted a re-evaluation of the Philippines’ standing in global trade." • The EU and the Philippines have resumed FTA negotiations after a hiatus since 2017, reflecting new diplomatic momentum under President Marcos Jr. • The trade deal is expected to significantly increase bilateral trade, potentially by up to 6 billion euros. • Key sectors poised to benefit include agriculture, garments, and the burgeoning IT-BPO industry. • The EU sees the Philippines as a vital partner to help diversify trade networks and mitigate geopolitical risks associated with its current dependencies. Co-authored by ECCP Director for Public Policy, Advocacy, and Projects Sophia Ordoña, the article explores the renewed momentum behind the EU-Philippines Free Trade Agreement. Read more via https://lnkd.in/gWEeKByy.

Asia-Pacific free trade pacts have been a big success for the U.S. Trade is strategy and FTAs tie together geopolitics and economics. Washington's FTAs with Australia on the south side of the Indo-Pacific, Singapore in the center and South Korea in the north, give the U.S. a key advantage in its competition with China.

[WORLD] China's bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could be a game-changer in global trade. #ChinaCPTPP #GlobalTrade #AsiaPacificEconomy #TradeAgreements #GeopoliticalShift https://lnkd.in/g8jQXx4Y

China and Switzerland Officially Launch Free Trade Agreement Upgrade Negotiations Source: Xinhua News Agency, September 24, 2024, 08:32 Beijing, September 23 (Xinhua) — The Ministry of Commerce announced on the 23rd that Minister of Commerce Wang Wentao and Swiss Federal Councillor and Minister of Economy, Education and Research, Guy Parmelin, jointly announced via video conference the official launch of negotiations to upgrade the China-Switzerland Free Trade Agreement (FTA). Both sides agreed to work together to expedite negotiations and reach a high-level upgrade agreement as soon as possible on the basis of mutual benefit and win-win cooperation. Wang Wentao stated that since the China-Switzerland FTA came into effect 10 years ago, it has played a positive role in promoting bilateral trade growth, benefiting businesses in both countries. Upgrading the agreement would further expand bilateral trade, promote two-way investment, and enhance the quality of economic and trade cooperation between the two nations. Especially against the backdrop of rising anti-globalization sentiments, this upgrade will send a positive signal of the two countries' support for free trade and open cooperation. Guy Parmelin remarked that China and Switzerland efficiently reached a win-win FTA in 2013, which has generated significant benefits for both sides. Given the current rise of global trade protectionism, the launch of FTA upgrade negotiations between China and Switzerland is of great significance. It demonstrates the commitment of both nations to building an open and regulated international economic and trade environment and sends a positive signal to the world of deepened bilateral cooperation. He expressed confidence that through joint efforts, the upgrade negotiations will be successful. The China-Switzerland Free Trade Agreement was signed in July 2013 and came into effect in July 2014.

It’s great to see Malaysia taking centre stage in Europe with Prime Minister Anwar Ibrahim’s recent visit to the UK and EU. This week has been full of significant developments as Malaysia strengthens its global presence and builds on its role as a key partner in international trade and diplomacy. Here are some highlights: - Reigniting the Malaysia-EU Free Trade Agreement (MEUFTA): After over a decade of stalled talks, PM Anwar’s visit to Brussels has revived negotiations, paving the way for closer economic ties with the EU, one of Malaysia’s biggest trading partners. This is a crucial step for industries like palm oil, which Malaysia has worked hard to align with global sustainability standards. - Strengthening ties with Italy: Italy’s Deputy Minister for Foreign Affairs, Maria Tripodi, visited Malaysia to explore opportunities in trade, defense, energy, and higher education. With trade between the two countries growing steadily, this visit reflects the potential for even deeper collaboration. - PM Anwar’s take on global trade and ASEAN: Speaking in London, PM Anwar shared his belief that trade barriers, while disruptive in the short term, ultimately give way to the realities of global interdependence. He also highlighted the importance of ASEAN engaging actively with both the US and China, balancing these relationships to strengthen regional cooperation. Read more here - Global trade will survive ‘initial shock’ of Donald Trump’s rule, says Malaysia PM, Financial Times, by Alec Russell and Victor Mallet, https://on.ft.com/42kqSS0 - BFM Business's Morning Brief interview with Karl Godderis (EUROCHAM Malaysia) on Malaysia-EU FTA https://lnkd.in/gJVy7YFh - Malaysia, Italy To Explore New Cooperation Opportunities, Business Today, https://lnkd.in/gMx5qY3i - PM Anwar’s Brussels visit sparks hopes of reviving Malaysia-EU trade talks, says envoy, Malay Mail, https://lnkd.in/ghDDzyWz #MalaysiaInEurope #Trade #MEUFTA #GlobalEngagement #ASEAN

Lao PDR Snapshot A meeting to discuss the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) agreement took place in Vientiane on Tuesday to evaluate the implementation of the agreement in Laos in recent years. The gathering saw government officials and members of the business community share opinions on the implementation of the AANZFTA agreement and heard recommendations for its direction in the future. The meeting was cochaired by Laos’ Deputy Minister of Industry and Commerce Dr Manothong Vongsay; Deputy Australian Ambassador to Laos, Mr Dan Heldon; and Facility Director of Regional Trade for Development, Mr Adrian Gilbert. Speaking at the event, Director General of the Foreign Trade Policy Department, Ministry of Industry and Commerce, Mr Xaysana Xayakone, said that in 2022 the value of trade between ASEAN and Australia reached US$101.1 billion, while that between ASEAN and New Zealand reached US$14.9 billion. In the same year, direct investment by Australia in ASEAN was worth US$2 billion while Australia and New Zealand combined were ASEAN’s 8th largest trading partner. To expand the coverage of the agreement and ensure it is comprehensive, up-to date and in line with the current economic situation compared to other agreements of ASEAN with negotiating partners, the agreement will be reviewed every five years or as agreed by the member countries. The challenge of Laos with regard to AANZFTA is to become more competitive, Mr Xaysana said. That means business operators will have to adapt and strengthen their competitiveness, and improve quality, efficiency and effectiveness in production in order to compete with other countries in the region. “However, the government and the business sector have not yet recognised and deeply understood the benefits and obligations of AANZFTA, which may be an obstacle to the implementation and effective use of the privileges of the agreement,” he added. Source: Vientiane Times

International trade is crucial for Europe's economy. Balancing dependency and diversification are key to ensure long-term economic stability and resilience. A principle that worth to be addressed properly, and fast. We Europeans must bridge our differences, emphasize our similarities, and strive for development as a beacon of societal well-being. Ironically, it is fitting to quote the American industrialist Henry Ford: "Coming together is the beginning. Keeping together is progress. Working together is success." #EU #trade #internationaltrade #agreements #progress #economicdevelopment

Catalyzing High-Quality Growth in China's Trade in Services China is poised to significantly elevate its trade in services through strategic high-level opening-up, fostering an innovative environment, and optimizing the conditions for cross-border trade. This ambition is captured in a recent policy document issued by the State Council, which outlines a forward-looking strategy to propel the development of the services sector via systemic reforms and international collaboration. At a recent press briefing, Tang Wenhong, Assistant Minister of Commerce, highlighted the critical juncture at which China's services trade currently stands. He emphasized that the new policy framework is set to chart the future course of this sector, reinforcing its role as a vital engine of economic globalization. Over the past decade, global services exports have seen an average annual growth of 4.9%, outpacing the growth rate of goods exports by a factor of two, as reported by the World Trade Organization. #trade #openingup #Beijing #CIFTIS #WTO