Germany news: Merz in Asia warns against weaponizing trade, calls for 'rules based' order

Merz used his Asia tour to argue for stronger global trade and a rules-based economic order. He said Germany and Europe should cooperate with Asian economies rather than retreat behind unilateral measures. The goal is to protect growth, prosperity, and regional security while trade tensions rise.

In Seoul, Merz said the European Union was ready to help shape a better deal for Asian countries facing instability. He also called in Singapore for an EU free-trade agreement with the CPTPP. During the tour, he promoted broader partnerships instead of relying only on separate bilateral deals.

His warning focused on tariffs, technology restrictions, and competition for critical raw materials. Merz said supply chains should not become “political pawns.” Germany and Europe are therefore presenting cooperation with Asian economies as a way to resist unilateralism, autocratic power politics, and violations of international law.

A rules-based economic order is a trading system built around shared rules, agreements, and predictable treatment between countries. It aims to make market access, trade disputes, technology links, and supply relationships more stable. Businesses can plan more confidently when powerful countries are expected to follow common commitments.

Unilateral rule-setting works differently. One government can impose tariffs, restrict technology, or control access to materials based mainly on its own interests. The other side may have little influence over the decision. Merz linked this problem to tariffs, technological decoupling, and the contest for critical raw materials.

The article presents Europe and Asian economies as potential supporters of common rules. Merz said they should join forces against unilateralism and violations of international law. This approach does not remove competition, but it seeks to keep competition within agreed boundaries rather than turning trade into a power struggle.

The United States and China are the central economic powers in the tensions Merz described. The article says their competition is intensifying and changing the global economy. Their rivalry involves tariffs, technology, and access to critical raw materials, all of which affect countries beyond the two powers.

The European Union is another important actor. Merz said the EU could help lead efforts to create a better trade arrangement for Asian countries under pressure. Germany is supporting that role through diplomacy and business outreach. Asian economies, including South Korea, Singapore, and Japan, are presented as important partners and affected middle powers.

The current reality is therefore broader than a simple US-China dispute. Europe wants stronger cooperation with Asia and more agreements beyond bilateral deals. South Korea’s prime minister also highlighted German companies’ use of Korea as a hub for wider Asia-Pacific expansion.

The CPTPP is a large multilateral free-trade agreement linking economies around the Asia-Pacific and the Americas. It currently has 12 participating countries and covers roughly 500 million people. Together, members account for about 15% of global gross domestic product. These figures use established background knowledge, because the article does not state the agreement’s size or membership count.

Its importance comes from its broad network. Instead of one country negotiating separately with another, members use a shared framework for trade. The United Kingdom is the only European signatory, while the United States withdrew from the earlier Trans-Pacific Partnership in 2017. The CPTPP then continued under its current name.

Merz proposed an EU-CPTPP free-trade agreement in Singapore. Such a link would connect Europe to an established Asia-Pacific and Americas network. It could give countries more options as US-China competition, tariffs, and technology restrictions reshape trade.

When tariffs, technology restrictions, or raw-material disputes disrupt supply chains, businesses may face higher costs and fewer reliable suppliers. Production can slow if companies cannot obtain components, software, energy inputs, or minerals. Consumers may then encounter higher prices, fewer choices, or delays. These are standard economic effects of trade disruption.

The article gives the mechanism clearly. Tariffs make cross-border goods more expensive. Technology controls can block access to key equipment or systems. Competition for critical raw materials can make supplies less secure. Together, these pressures can force firms to redesign supply chains, postpone investment, or move operations.

Merz said the consequences extend beyond individual companies. He warned that disrupted trade jeopardizes growth, prosperity, and the security of entire regions. His proposed response is greater cooperation and fairer partnerships, so supply chains remain economic connections rather than political pawns.

A broader EU partnership with the CPTPP could offer an alternative to bilateral trade deals by linking Europe to several economies through one framework. This can widen market access and create common expectations for trade. It also supports Merz’s call for opportunities beyond separate agreements between individual countries.

The mechanism is network-building. The CPTPP already connects the Asia-Pacific and the Americas, while the United Kingdom is its only European signatory. An EU-level agreement could add Europe’s economic weight to that existing structure. Businesses would potentially have more markets and more predictable rules, rather than navigating many different arrangements.

The proposal remains a call for cooperation, not a completed agreement. Merz raised it in Singapore during his Asia tour. If pursued, it could help the EU and Asian economies respond collectively to tariffs, technology restrictions, and competition over raw materials, while supporting the rules-based order he advocates.

Critical raw materials, advanced technologies, and supply chains are foundations of modern economies. Materials are needed for industrial production and new technologies. Advanced technologies help companies compete and raise productivity. Supply chains connect these inputs to factories, services, and consumers. If access fails, economic activity can weaken quickly.

The article shows how these assets become strategic. Countries are competing for critical raw materials and new technologies. Governments can also obstruct access to key technologies or use trade restrictions to protect their interests. When that happens, businesses may lose dependable inputs, while countries become more exposed to outside pressure.

Merz therefore connected economic security with fair trade and reliable cooperation. He warned that supply chains used as political pawns can jeopardize growth, prosperity, and regional security. His answer is a rules-based order, stronger European-Asian partnerships, and trade relationships that resemble fair partnerships rather than displays of power.