EU, Indo-Pacific bloc seek to form major economic alliance amid US tariffs

The European Union and the 12-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are seeking to form a major economic alliance, according to Politico.

The media outlet reported on the US social media platform X on Monday, citing multiple diplomatic sources, that the EU and the Indo-Pacific bloc are launching talks to form one of the world's largest economic alliances.

As the two blocs seek closer ties amid US President Donald Trump's tariff threats, Canada is reportedly leading the initiative after Prime Minister Mark Carney last month urged middle powers to resist trade war pressure.

The EU and the CPTPP, thus, plan to launch negotiations this year on a deal designed to link the supply chains of key members -- including Canada, Singapore, Mexico, Japan, Vietnam, Malaysia, and Australia -- more closely with Europe.

The initiative is expected to bring together around 40 countries, with the goal of reaching an agreement on so-called "rules of origin," which would determine a product's economic nationality.

The deal also aims to allow producers in both blocs to exchange goods and parts more freely through a low-tariff arrangement.

"The work is definitely coming along," a Canadian government official further told Politico.