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

Merz makes case in Seoul

On Friday, Chancellor Friedrich Merz addressed the Asia-Pacific Conference of German Business in Seoul, the final stop of his three-country tour. He said Germany and Europe were prepared to work with Asian economies to support a rules-based economic order.

Merz argued that the European Union could help shape better trade arrangements for Asian countries facing pressure from disruption to the established system. He said the changes affect partners across the Indo-Pacific, as well as Germany and Europe.

Trade tensions reshape economy

Merz pointed to rising US-China competition, tariffs, technology decoupling and a contest for critical raw materials and new technologies. He said these forces are changing how the global economy works. He warned that growth, prosperity and regional security could suffer when supply chains are used as political leverage, access to key technologies is blocked, or competition for raw materials replaces fair cooperation.

Tour promoted wider partnerships

During earlier stops in Singapore and Japan, Merz called for free-trade partnerships and stronger cooperation between Europe and Asian economies. In Singapore on Wednesday, he proposed an EU free-trade agreement with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The United Kingdom is the only European signatory to the pact, though it is outside the EU. The United States withdrew from the original Trans-Pacific Partnership in 2017 during President Donald Trump’s first administration.

Steinmeier’s China diplomacy

President Frank-Walter Steinmeier was also in Asia for a multi-day visit to China, where he was set to hold talks with Chinese President Xi Jinping. His trip focused on diplomacy, while Merz emphasized trade ties with middle powers. South Korean Prime Minister Han Seong Sook said German companies use Korea as a central hub for expanding across the Asia-Pacific region.