Challenging US Dominance, EU Courts Indo-Pacific Bloc to Explore Giant Trade Alliance

The European Union and the 12 member states of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are exploring the formation of a major cross-regional economic alliance, as reported by US media outlet Politico.

Citing several diplomatic sources, the report published on Monday, 16 February 2026, stated that the European and Indo-Pacific blocs have initiated preliminary discussions to establish one of the world’s largest economic alliances.

The move has emerged amid threats of trade tariffs from US President Donald Trump. Canada is said to be leading the initiative after Prime Minister Mark Carney last month called on middle-income nations to unite against the pressures of the global trade war.

The EU and CPTPP plan to begin negotiations this year to craft an agreement that would strengthen supply chain integration among key members — including Canada, Singapore, Mexico, Japan, Vietnam, Malaysia, and Australia — with European markets.

The initiative, estimated to involve approximately 40 countries, aims to agree on rules of origin — provisions that determine the economic nationality of a product in international trade. The agreement is also expected to enable producers in both blocs to exchange goods and components more freely through low-tariff schemes.

“This work is clearly under way,” a Canadian government official told Politico.

Established in 2018, the CPTPP currently comprises 12 members: Canada, Mexico, Peru, Chile, Japan, Vietnam, Singapore, Malaysia, Brunei Darussalam, Australia, New Zealand, and the United Kingdom.

Meanwhile, Indonesia expressed its interest in joining in September 2024, with the accession process expected to commence this year.