As the world faces risks from successive trade barriers, tightening the links between nations is considered a necessary solution to help economies withstand turbulent times.
At a recent meeting of foreign ministers from China, Japan and the Republic of Korea, the three East Asian countries emphasised that promoting regional economic integration is the top priority in their future trilateral cooperation.
Accordingly, the three countries agreed to continue discussions about restarting negotiations for the China-Japan-Korea Free Trade Agreement, accelerating the expansion of members in the Regional Comprehensive Economic Partnership (RCEP), and maintaining the stability of supply and production chains in the region.
Meanwhile, after a six-year hiatus, the Japan-China High-Level Economic Dialogue was successfully resumed, with the two sides reaching 20 important cooperation agreements.
Many intercontinental economic connections are also being strengthened. The European Union (EU) is accelerating the expansion of its cooperation agreement network. At a recent meeting, European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi committed to completing a free trade agreement by 2025, marking an important milestone in bilateral relations.
In the past few months, the EU has consecutively tightened cooperation with partners by completing digital trade negotiations with the Republic of Korea and a free trade agreement with MERCOSUR, upgrading the trade pact with Mexico, and restarting free trade negotiations with Malaysia.
European Central Bank (ECB) President Christine Lagarde noted that the enhancement of economic integration with countries worldwide is an effective solution for the EU in response to escalating global trade tensions.
For his part, new Canadian Prime Minister Mark Carney chose the UK and France as destinations for his first overseas trip after taking office. Amid complicated US-Canada relations during President Donald Trump, Prime Minister Carney affirmed that alongside efforts to maintain positive relations with the US, consolidating relationships with reliable European allies is more important than ever for Ottawa.
Tightening economic ties is a necessary step, given that trade barriers pose a common threat to many nations. ECB President Christine Lagarde observed that with an open trade policy and deep integration into the global economy, the Eurozone is particularly vulnerable to global turbulence. Increasing trade tensions could reduce Eurozone growth by 0.5 percentage points and simultaneously drive high inflation.
Meanwhile, new tariff barriers could also push the Canadian economy to the brink of recession. The Organisation for Economic Cooperation and Development (OECD) warns that a broader trade war would strike a severe blow to global economic growth efforts, with business investment activities being affected, inflation increasing, and central banks being forced to maintain higher interest rates for extended periods. The OECD has lowered its global economic growth forecast to 3.1% in 2025, down from 3.2% in 2024, and potentially further reducing it to just 3% in 2026.
Many countries are striving to transform challenges into opportunities to enhance cooperation and jointly open new development pathways for their economies. These handshakes also serve as an anchor keeping the world economy steady amid current uncertainties.
