Mark Carney maneuvers to unite EU and Trans-Pacific blocs against Trump tariffs

Canadian Prime Minister Mark Carney is spearheading a diplomatic campaign to unite two of the world’s most significant trade blocs, aiming to insulate the global economy from the “trade war” pressure exerted by US President Donald Trump’s protectionist agenda.

According to reports from POLITICO, the European Union and the 12-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have initiated high-level discussions. The objective is to form a colossal economic alliance that would encompass roughly 1.5 billion people and over a third of global GDP.

The initiative follows a strategic call to action by Prime Minister Carney, who has urged “middle powers” to resist economic coercion and safeguard the rules-based international order. During the World Economic Forum in Davos last month, Carney outlined his vision for an intercontinental “bridge” between the Trans-Pacific and European markets.

“Ottawa supports efforts to build a bridge between the CPTPP and the European Union, creating a new trading bloc of 1.5 billion people,” Carney told an audience of global leaders and business executives.

This movement is gaining rapid momentum. Member nations—including Singapore, Mexico, Japan, Vietnam, Malaysia, and Australia—are reportedly preparing to enter formal negotiations this year to intertwine their supply chains with European industry.

A central pillar of the proposed pact involves a technical yet transformative agreement on “rules of origin.” These regulations determine the economic nationality of a product and, by extension, the tariffs applied to it.

The negotiation seeks to establish a process known as “cumulation.” This would allow manufacturers across nearly 40 countries to trade parts and finished goods more seamlessly, treating components from any member state as “local” content to qualify for low-tariff or duty-free status.

Earlier this month, Carney dispatched his special representative to the EU, John Hannaford, to Singapore. The mission was designed to gauge the appetite of Indo-Pacific leaders for a unified front against the “Independence Day” tariffs proposed by the Trump administration.

“Work is definitely progressing. We have had very productive discussions with other partners around the world,” a Canadian government official told POLITICO.

The informal alliance began to solidify last November, following President Trump’s announcement of sweeping universal tariffs. In response, the EU and CPTPP members agreed to explore ways to prevent the fragmentation of global trade.

A Japanese trade official noted the significant value in such a partnership: “We believe there is great value in increasing trade between the EU and CPTPP parties, which will contribute to increasing supply chain resilience.”

However, officials caution that while the intent is clear, technical breakthroughs—particularly regarding complex rules of origin—may take time. A diplomat from a CPTPP member state remarked that if the EU remains “ready to talk,” the geopolitical landscape will become “very interesting.”

Inside the EU, interest is reportedly high, with senior business representatives describing some officials as “extremely keen” to pursue the cumulation agreement. While an EU official confirmed that the pact is part of a “wide scope of EU-CPTPP cooperation,” they noted it is not yet the top priority compared to immediate supply chain diversification.

Nevertheless, influential European business groups are increasing the pressure. The Association of German Chambers of Commerce and Industry (DIHK) and the British Chambers of Commerce have both signaled public support.

Klemens Kober, director of trade policy at DIHK, emphasized that making trade rules “as harmonious and simple as possible” would be a significant advantage for German firms. He noted that since the EU already holds free trade agreements with most individual CPTPP members—including Canada, Japan, and the UK—the ability to “accumulate” origin across these deals is the logical next step.

“The more [countries involved], the better,” Kober stated.