New Zealand’s prime minister proposed Thursday a new alliance to battle global export restrictions, enlisting members of a 12-nation trans-Pacific free trading agreement and the European Union.
The US tariffs had “shocked” financial markets, though Donald Trump’s pause on the highest levies — excepting those on China — was “welcome”, Prime Minister Christopher Luxon said.
The consequences of a world retreating from trade and uncertain about the economic future would be “more significant”, however, he warned in a speech in Wellington.
Countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) — accounting for about 15 percent of global economic activity — could help promote free trade, he said.
“One possibility is that members of the CPTPP and the European Union work together to champion rules-based trade and make specific commitments on how that support plays out in practice,” the prime minister said.
“My vision is that includes action to prevent restrictions on exports and efforts to ensure any retaliation is consistent with existing rules.”
Collective action by a large portion of the global economy would be a “significant step” towards preserving free trade and protecting supply chains.
The trans-Pacific CPTPP has a dozen members including Canada, Mexico, Chile, Peru, Malaysia, Japan, Brunei, Vietnam, Singapore, Australia, New Zealand, and most recently Britain.
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