Federal Chancellor Friedrich Merz is promoting a new alliance for regulated world trade in Japan

Chancellor Friedrich Merz (CDU) is a guest in Tokyo, Japan, for an economic forum. There Merz proposed the establishment of a new political alliance for regulated world trade. It should defend, strengthen and further develop an exchange of goods based on international agreements, he said. The alliance could “provide political impulses and also react together if the rules-based order comes into danger.”

Merz emphasized that the alliance is not intended to replace the World Trade Organization (WTO). However, it could advance the urgently needed reforms of the WTO. "In dispute settlement, we could agree to recognize decisions as binding despite the current blockage of the WTO appeals body."

In addition, the alliance could work together against illegal tariffs. "If the rules of the world trading system are questioned or even broken by others or if economic coercion is exercised, then we could coordinate in the alliance and act together."

Merz had already made a push for free world trade in Singapore on Tuesday by supporting a free trade agreement between the EU and the Trans-Pacific Partnership. Founded in 2018, the CPTPP includes twelve countries on five continents, including Japan, Canada, Australia, Chile and Great Britain.

Merz also advocated advancing efforts for a free trade agreement between the EU and the Asian Economic Community and linking agreements with individual countries to make them more efficient.