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How will other countries reposition their policies to respond to the current shocks? Is the world in for a recess, a risk of retreat, or a revamping of PTAs? These are the questions of today — very different from those of barely a year and a half ago.
Among the challenges, there is some interesting news. Under the strategy that the best defence is a good offence, the EU is bringing greater predictability to global trade. In Asia, countries are also moving forward. Japan has taken the leadership role in what seemed the unlikely resurrection of TPP after the US withdrawal. At the same time, the EU-Japan PTA — also to be signed in March — is a very significant economic cooperation commitment between these two leaders of world trade.
It is the most ambitious initiative to improve regional economic integration and connectivity on a transcontinental scale: Other regions are also actively engaged. In light of the above, the world is not in for a full retreat on PTAs. While some negotiations have been suspended, important trade agreements are being undone, and uncertainty underpins US involvement in the negotiation of trade agreements; the EU, Japan, China and others have picked up the baton and are leading the world to greater trade cooperation.
This is a sign of the new times.