German Chancellor Friedrich Merz Pushes for Pacific Free Trade Agreements During Singapore Visit
German Chancellor Friedrich Merz called for the European Union to pursue a major interregional trade agreement with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) during a keynote speech in Singapore on Tuesday. Speaking at the Singapore Lecture series, Merz argued that an EU trade deal with the CPTPP bloc would mirror interconnected supply and production chains, noting that both regions together account for a third of global trade.
The CPTPP is a free trade agreement founded in 2018 that spans the Pacific region and includes 12 countries on five continents, such as Canada, Australia, Chile, and the United Kingdom. The trade area covers a market of nearly 600 million people. Merz stated that the EU should align existing bilateral trade agreements struck with individual countries in the region to maximize their effectiveness.
Diversifying German Trade and Managing Relations with China
Merz outlined ongoing negotiations for free trade agreements with Indonesia, the Philippines, India, Australia, and Malaysia, emphasizing that Germany and the EU should not stop there. In the long term, the German leader aims to secure a comprehensive trade deal between the EU and the Association of Southeast Asian Nations (ASEAN), which counts 11 member states home to roughly 700 million residents.
The multi-day Asia trip, which includes upcoming stops in Japan and South Korea, is primarily aimed at diversifying Germany’s trade partnerships to reduce dependence on China. While acknowledging that Beijing’s actions pose serious questions regarding trade, security, and the international order, Merz rejected cutting ties with the world’s second-largest economy. He argued that isolating China would make Germany neither safe nor more prosperous, and advocated instead for mitigating risks through deeper partnerships with like-minded countries.
Germany and Singapore Agree to Strengthen Security Trade Investment
Alongside trade expansion, Merz and Singaporean Prime Minister Lawrence Wong agreed on a plan to strengthen bilateral cooperation in security, defense, trade, investment, green energy, and artificial intelligence. Nearly 2,400 German companies operate in Singapore, employing about 45,000 people and generating annual bilateral trade worth $13.2 billion.
During a brief ceremony at the parliament building in Singapore, the city-state honored the visiting German chancellor by naming a variety of orchid after him. The flower, designated as Vanda Friedrich Merz, features purple-brown flowers and rich green leaves. Merz is scheduled to travel onward to Japan on Wednesday for the next leg of his third trip to Asia since taking office as chancellor in 2025.
Worth a look