Andrea Innocenti At the end of an intense five-day tour of the three major Indo-Pacific hubs, Friedrich Merz returned to Berlin with a sense of surprise: the response from Asian partners to the European automotive project was more enthusiastic than expected. The Chancellor emphasized to journalists that comments from Singapore, Japan, and South Korea highlighted concrete fears of protectionism by the European Union, perceived as a potential closure to non-European markets.
Concerns expressed by Singapore, Japan and South Korea
During meetings in Seoul and Tokyo, representatives of the three countries expressed concern over the Franco-German proposal to promote the Made in Europe label in the automotive industry. According to their assessments, the measure risks creating non-tariff barriers that would penalize global supply chains, especially for critical components such as rare earth metals.
Merz admitted that these remarks had sparked a debate on whether the EU should adopt a more protectionist stance , calling for a swift response.
Risk of economic pressure from China and the United States
In his speech in Tokyo, Merz made subtle reference to China's threats to limit access to rare earth metals and potential tariff measures proposed by US President Donald Trump.
He suggested that, if such pressure were to materialize, the EU should react in a coordinated manner with its partners to defend trade rules based on shared principles.
Proposal for a global political alliance for rules-based trade
The Chancellor has launched the idea of a new " comprehensive political agreement for rules-based trade ," aimed at the so-called "middle powers." The initiative envisages the participation of the EU, major Asian economies, as well as Canada, Australia, New Zealand, and the South American Mercosur bloc. The stated goal is to create a coordination network capable of countering any attempts to undermine the international trading system, maintaining an open and predictable market for all.
The role of the next EU summit in Dublin
Merz concluded his statement by announcing that the concerns raised by the Asian region will be discussed at the next meeting of European Union heads of state and government, scheduled for November 13 in Dublin. This informal meeting will assess requests for market opening and define guidelines to avoid a new wave of protectionism that could jeopardize transatlantic and transpacific trade relations.
Implications for the future of EU-Asia relations
The criticisms expressed by Singapore, Japan, and South Korea are a reminder of the delicate balance between national interests and global dynamics. If the EU chooses to pursue a more protectionist strategy , it risks alienating strategic partners in the Indo-Pacific, weakening trade and defense alliances in the face of growing geopolitical tensions. At the same time, a coordinated, rules-based response could strengthen the EU's leadership in shaping international norms, while ensuring continued access to critical materials and advanced technologies.