India
South
Korea
Australia
Philippines
Vietnam
Myan-
mar
Thailand
Cambodia
Singa-
pore
Indonesia
Malay-
sia
Japan
Laos
Brunei
China?
We do not include China in our Asia Pacific sample.
Our goal is to understand the trade relations of the
EU, the US and China with the Asia Pacific. To
include China would therefore be self-referential.
These include the five Asia-Pacific
states (Japan, India, South Korea,
Australia and Indonesia) whose
economy accounts for at least 1
percent of world GDP plus ASEAN.
Asia Pacific states?
The Association consists of: Brunei,
Cambodia, Indonesia, Laos, Malaysia,
Myanmar, Philippines, Singapore,
Thailand, and Vietnam.
ASEAN?
More than a partial scope agreement?
Substantive provision on services?
Substantive provision on investments?
Substantive provision on standards?
Substantive provision on public procurement?
Substantive provision on competition?
Substantive provision on intellectual property rights?
Total range
Source: Dür, A., Baccini L., and Elsig M. 2014.
The Design of International Trade Agreements: Introducing
a New Dataset. The Review of International Organizations.
1
1
0
1
0
0
0
3
More than a partial scope agreement?
Substantive provision on services?
Substantive provision on investments?
Substantive provision on standards?
Substantive provision on public procurement?
Substantive provision on competition?
Substantive provision on intellectual property rights?
Total range
Source: Dür, A., Baccini L., and Elsig M. 2014.
The Design of International Trade Agreements: Introducing
a New Dataset. The Review of International Organizations.
1
1
1
1
0
0
0
4
More than a partial scope agreement?
Substantive provision on services?
Substantive provision on investments?
Substantive provision on standards?
Substantive provision on public procurement?
Substantive provision on competition?
Substantive provision on intellectual property rights?
Total range
Source: Dür, A., Baccini L., and Elsig M. 2014.
The Design of International Trade Agreements: Introducing
a New Dataset. The Review of International Organizations.
1
1
1
1
0
1
1
6
More than a partial scope agreement?
Substantive provision on services?
Substantive provision on investments?
Substantive provision on standards?
Substantive provision on public procurement?
Substantive provision on competition?
Substantive provision on intellectual property rights?
Total range
Source: Dür, A., Baccini L., and Elsig M. 2014.
The Design of International Trade Agreements: Introducing
a New Dataset. The Review of International Organizations.
1
1
1
1
0
0
1
5
More than a partial scope agreement?
Substantive provision on services?
Substantive provision on investments?
Substantive provision on standards?
Substantive provision on public procurement?
Substantive provision on competition?
Substantive provision on intellectual property rights?
Total range
Source: Dür, A., Baccini L., and Elsig M. 2014.
The Design of International Trade Agreements: Introducing
a New Dataset. The Review of International Organizations.
1
1
1
1
1
1
1
7
Population
2020
2026
GDP PPP
2020
2026
Trade Volume
2020
2020
2010
2026
2000
1990
China
EU
USA
Asia Pacific
'Brexit bump'
5.8%
4.3%
17.9%
29.3%
18.3%
3.5%
1.6
1.4
1.3
2020
With 2.24bn people living in the
14 Asia Pacific states, these already
accounted for ca. 30 percent of
the world population.
14 Asia Pacific states' share
of the world population
European Union
445m people were living
in the EU in 2020, which
is economically and politi-
cally the world’s most
integrated regional
market.
China
1.41bn people were living in China in
2020. China has the biggest market world-
wide in terms of potential customers. Due
to gaps in regional development, its poten-
tial is not yet fully tapped.
USA
330m people were living
in the US in 2020. Due to
high purchasing and con-
sumption power, it is one
of the most attractive
markets worldwide.
Asia Pacific
The 14 countries differ
greatly in terms of dome-
stic market size: While
giant India is home to
1.38 bn, Brunei has a
tiny population of just
461,000. But it, together
with nine other countries,
comprises the Association
of Southeast Asian Nations
(ASEAN). 660m strong,
ASEAN is an attractive
regional market.
2020
2010
2026
2000
1990
China
India
EU
USA
Asia Pacific
'Brexit bump'
5.5%
4.1%
17.9%
29.1%
17.5%
3.5%
1.5
1.5
1.3
2026
Within just six years, the 14 Asia Pacific countries will
grow by around 112m people, of which 40m alone
will live in ASEAN member states. India’s population
will surpass China’s in the coming years.
14 Asia Pacific states' share
of the world population
European Union
Due to low birth rates, the
EU relies on net immigration
to prevent its population
from shrinking and thus
will add 3m to the Common
Market by 2026. However,
like the US, its share of the
world population is
declining.
China
China’s one-child policy led to low fertility
rates. China therefore shares a trait in com-
mon with the US and EU: its share of the
world’s population is declining
–
and even
at a faster rate than that of the US or EU.
USA
Even though its population
will add on 7m by 2026,
its relative weight in the
global population will
decline.
Asia Pacific
By 2026, India expects
to see its population
grown by about 77m or
about
roughly the equiva-
lent of today’s Germany
.
Japan on the other hand
will see its population
further decline by about
3m, the only Asia Pacific
country to do so in
absolute numbers.
2020
2010
2026
2000
1990
USA
EU
China
Asia Pacific
2020
China is already the world’s biggest economy as
measured by GDP at purchasing power parity (PPP).
The US and the EU rank second and third.
The combined GDP (PPP) of the 14 Asia Pacific states
stood at 26.4 trillion USD in 2020 and 20 percent of
world GDP. Showing robust growth since 2010, Asia
Pacific has developed into the most important region
in terms of prospective growth.
China
European Union
China’s GDP (PPP) overtook the US in 2016
and the EU in 2020 due to the COVID bump.
Amounting to 24.2trn USD in 2020, it
comes close to that of the other 14 Asia
Pacific states combined.
EU GDP (PPP) stood at 19.8trn
USD in 2020. The EU has faced
enlargements and the exit of
the UK in recent years with
significant impacts on GDP
development. Most notable is
the 18 percent drop between
2019 and 2020 due to Brexit
and COVID.
USA
US GDP (PPP) stood at 20.9
trn USD in 2020. In recent
decades the US economy
has faced many crises, such
as the dotcom bubble, the
Lehman collapse or
COVID, which slowed
down growth. But,
like a jack-in-the-
box, it always
bounced back
strongly.
Asia Pacific
The 14 Asia Pacific states
have experienced dynamic
growth in recent deca-
des and their combined
GDP (PPP) was five times
bigger in 2020 than in
1990. ASEAN has even
increased its GDP (PPP)
more than sevenfold,
becoming a serious
economic player in the
region.
15.0%
15.8%
6.8%
20.0%
18.3%
1.8
4.0%
14 Asia Pacific states' share
of global GDP (PPP)
2.5
2020
2010
2026
2000
1990
USA
EU
China
Asia Pacific
2026
IMF forecasts see dynamic recoveries in 2020-2026.
China has the potential to remain the undisputed number
one in terms of GDP (PPP), leaving the US and EU far behind.
Please note: Projections do not include the impacts of the
war against Ukraine and the ultra-strict lockdowns
in China. These developments are bound to hamper
global and regional recoveries.
European Union
China
China's GDP (PPP) is projected to be 62
percent bigger, translating into a 6.9
percentage point gain in global share.
EU GDP (PPP) is projected to
be 37 percent bigger than in
2020, translating into a 2.4
percentage point gain in
global share.
USA
US GDP (PPP) is projected
to be 39 percent bigger
than in 2020, translating
into a 2.9 percentage
point gain in
global share.
Asia Pacific
Asia Pacific states'
GDP (PPP) forecasts
are impressive.
GDP (PPP) of the
ASEAN states will be
54 percent bigger than
in 2020, a 6.1 percent-
age point gain in
global share, further
increasing the region’s
global economic
importance.
17.4%
18.7%
10.2%
26.1%
25.2%
2.1
4.3%
3.4%
14 Asia Pacific states' share
of global GDP (PPP)
2020
2010
2000
1990
USA
EU
China
Asia Pacific
The line graph shows the roller coaster ride of
global trade. The dynamic development starting
in 2003 ended in the 2008-2009 recession. The
2010-2014 recovery gave way to the
2015-2016 dip.
Whether boom or bust, Asia Pacific
continues to come out stronger
and stronger in terms
of trade volume.
2020
European Union
11.9%
10.7%
17.5%
12.3%
EU trade volume stood at
4.17trn USD in 2020, con-
fining it for the first time
to second place as global
trade power behind
China. Brexit was a key
reason, since the EU
thereby lost a major
contributor to its global
trade volume.
China
China’s trade volume stood at 4.31trn USD in
2020, making it the “world trade champion”.
Contrary to the US, China’s focus is on
exports, which account for 56 percent of
Chinese trade volume.
USA
US trade volume stood
at 3.77trn USD in 2020,
putting the US third after
China and the EU. US
participation in global
trade has a strong
focus on imports,
which account for
62 percent of its
trade volume.
14 Asia Pacific states' share
of the global trade volume
Asia Pacific
The combined trade
volume of the 14 Asia
Pacific states stood
at 6.12trn USD, making
the region a global
trade hub even without
China.
ASEAN trade contrib-
uted about one third
to Asia Pacific trade
and stood for six
percent of global trade.
3.6%
1.8
2.9%
1.8
1.5
1.5
1.3
1.3
2.9%
Trade Relations 2020
European Union
China
USA
Asia Pacific
Other
55.3%
13.4%
16.1%
15.2%
China
USA
Japan
South
Korea
Australia
India
Vietnam
Malaysia
Thailand
Singapore
Indonesia
Philippines
8.4%
7.2%
6.0
4.2
22.5%
18.2%
13.3%
8.8%
7.3
2.5
Cambodia 0.9%, Myanmar 0.6%, Laos 0.1%, Brunei 0.03%
European
Union
China
USA
Asia Pacific Trade Disaggregated
Trade with the four non-ASEAN countries make up
61 percent of EU Asia Pacific trade. By trade volume,
Japan is leading (22.5 percent), followed by South
Korea (18.2 percent), India (13.3 percent), and Australia
(7.3 percent). The ASEAN states together account for
39 percent of EU’s Asia Pacific trade.
EU Major Trade Ties
China is the EU’s most important trade partner in
terms of volume. The US ranks second. While China
is the EU’s main source of imports, the US is its most
important export market. With a share of 13.4 percent,
the 14 Asia Pacific states have significant regional
weight in extra-EU trade with exports and imports
nearly in balance, but their relative importance for EU
trade is far less than that for the US or China.
232bn USD
403bn USD
439bn USD
232bn USD
296bn USD
264bn USD
Asia Pacific
Japan
South
Korea
Australia
India
Vietnam
Malaysia
Thailand
Singapore
Indonesia
Philippines
8.5%
6.4%
5.8
5.1
20.6%
18.5%
10.9%
12.5%
5.7
4.0
Myanmar 1.2%, Cambodia 0.6%, Laos 0.2%, Brunei 0.1%
Other
40.2%
33.2%
14.0%
12.6%
Asia Pacific
USA
EU
761bn USD
787bn USD
393bn USD
259bn USD
453bn USD
136bn USD
European
Union
China
USA
Asia Pacific Trade Disaggregated
The ASEAN states together make up almost half of
China’s trade with the Asia Pacific (44 percent, with
Vietnam leading with 12.5 percent). China’s dominant
non-ASEAN trade relations in the region are with
Japan (20.6 percent) and South Korea (18.5 percent),
respectively.
China’s Major Trade Ties
As trading partner, the EU ranks second for China after ASEAN,
while the US comes third. China’s trade relations with both the
US and EU strongly focus on exports, accounting for 77 percent
and 60 percent of the respective trade volume. China’s regional
trade focus, however, lies within its direct neighborhood: the
14 Asia Pacific states alone account for one third of China’s total
trade volume, with exports and imports nearly in balance.
Asia Pacific
48.4%
14.9%
19.5%
17.2%
Asia Pacific
Other
China
EU
Japan
South
Korea
Australia
India
Vietnam
Malaysia
Thailand
Singapore
Indonesia
Philippines
Cambodia 0.9%, Myanmar 0.2%, Brunei 0.03%, Laos 0.02%
7.9%
7.7%
6.6
3.8
25.0%
17.3%
10.7%
12.2%
5.2
2.6
492bn USD
415bn USD
233bn USD
435bn USD
125bn USD
242bn USD
European
Union
China
USA
Asia Pacific Trade Disaggregated
Trade with the four non-ASEAN countries makes up
58 percent of US Asia Pacific trade. By trade volume,
Japan leads (25 percent), followed by South Korea
(17.3 percent), India (10.7 percent) and Australia (5.2
percent). The ASEAN states together make up 42
percent of US Asia Pacific trade.
US Major Trade Ties
The EU is the most important trade partner of the US, followed
by China. US trade relations with both players share one thing
in common: a strong focus on imports, which account for 77
percent of the trade volume with China and 64 percent of that
with the EU. The 14 Asia Pacific states together make up nearly
20 percent of US trade volume, giving them more weight in US
global trade relations than either the EU or China.
Asia Pacific
State of Play FTAs 2020
Overview
European Union
China
USA
China
EU
USA
China
EU
USA
China
EU
USA
China
EU
EU
China
China
EU
EU
EU
Indonesia
European Union
In 2020, the EU had established FTAs
with four of the 14 Asia Pacific states.
All of them reach the highest depth
level possible.
58 percent of EU trade with Asia Pacific
states is potentially covered by these FTAs.
This proportion may even increase in the
next few years since three more agree-
ments are under negotiation.
In addition, an
EU trade relations with Association of South East Asian Nations (ASEAN) (europa.eu)
EU-ASEAN FTA
is being
considered, but due to policy issues nego-
tiations are paused and EU’s focus is on
concluding bilateral FTAs with individual
ASEAN member states.
EU FTAs in detail
In this infographic, Free Trade Agreements (FTA) are defined as
bilateral or multilateral measures undertaken by governments
or regions to liberalize tariffs on most goods traded.
The term depth takes into account the differences among FTA,
whereby 1 refers to the elimination of tariffs. The areas of services
trade, investments, standards, public procurement, competition as
well as intellectual property rights each depict additional factors
that enhance the depth score to a maximum of 7.
China
As of 2020, China had bilat-
eral FTAs with three out of 14
Asia Pacific states as well
as a regional FTA with ASEAN.
In 2021, moreover, China con-
cluded an FTA with Cambodia.
On the FTA Depth Index,
China’s FTAs range from rather
shallow (ASEAN) to deep
(South Korea).
74 percent of China’s trade
with the Asia Pacific is poten-
tially covered by these agree-
ments.
Important note: China is also
part of the Regional Compre-
hensive Economic Partnership
(RCEP), a mega-regional
trade deal which brings together
ASEAN+5 (China, Japan, South
Korea, Australia, New Zealand).
China’s FTAs in detail
USA
The US had bilateral FTAs
with three out of 14 Asia
Pacific states in 2020, all of
which reach the highest depth
level possible. Today, 30
percent of US trade with
the Asia Pacific is potentially
covered by bilateral FTAs.
The last one was concluded
in 2012 and none are currently
under negotiation.
The US was also part of the
mega-regional trade agree-
ment Trans-Pacific Partnership
(TPP), but withdrew from
negotiations under President
Donald Trump in 2017.
US FTAs in detail
Australia
Japan
South
Korea
Vietnam
India
ASEAN
RCEP
Cambodia
Singapore
European
Union
1
2
4
3
4
1
2
3
2
3
1
7
7
7
7
1
2
3
4
FTA Depth Index
Japan
: FTA in force since 2019. 2020 trade
volume potentially covered: 125bn USD.
South Korea
: FTA in force since 2015. 2020
trade volume potentially covered: 102bn USD.
Singapore
: FTA in force since 2019. 2020
trade volume potentially covered: 47bn USD.
Vietnam
: FTA in force since 2020. 2020 trade
volume potentially covered: 49bn USD.
Australia
: FTA under negotiation since 2018;
last round in February 2022.
Indonesia
: FTA under negotiation since 2016;
last round in November 2021.
India
: FTA under negotiation since 2007;
last round in 2013; paused until decision to resume
made in 2021; last round in June/July 2022.
Philippines
: FTA negotiations started in 2015;
no negotiations scheduled since 2017.
Malaysia
: FTA negotiations started in 2010;
paused since 2012.
Thailand
: FTA negotiations started in 2013;
no negotiations scheduled since 2014.
ASEAN
: Negotiations with ASEAN-7 (minus
Cambodia, Laos, Myanmar) started in 2007, but
suspended in 2009.
IN FORCE
The EU had FTAs in force with four
out of 14 Asia Pacific states in 2020.
Together, they
potentially cover
58 percent of EU
trade in the region.
UNDER NEGOTIATION
As of 2020, the EU is in FTA negotiations
with three of the 14 Asia Pacific states.
ON HOLD
As of 2020, FTA negotiations are on
hold with three Asia Pacific countries...
...as well as with ASEAN.
REMINDER
TTIP negotiations between the EU
and the US.
Each of the four FTAs reaches the
maximum depth value of seven.
Rollover values for details.
European
Union
1
3
2
4
1
2
3
2
3
1
7
7
7
7
1
2
3
4
FTA Depth Index
Japan
: FTA in force since 2019. 2020 trade
volume potentially covered: 125bn USD.
South Korea
: FTA in force since 2015. 2020
trade volume potentially covered: 102bn USD.
Singapore
: FTA in force since 2019. 2020
trade volume potentially covered: 47bn USD.
Vietnam
: FTA in force since 2020. 2020 trade
volume potentially covered: 49bn USD.
Australia
: FTA under negotiation since 2018;
last round in February 2022.
Indonesia
: FTA under negotiation since 2016;
last round in November 2021.
India
: FTA under negotiation since 2007;
last round in 2013; paused until decision to resume
made in 2021; last round in June/July 2022.
Philippines
: FTA negotiations started in 2015;
no negotiations scheduled since 2017.
Malaysia
: FTA negotiations started in 2010;
paused since 2012.
Thailand
: FTA negotiations started in 2013;
no negotiations scheduled since 2014.
ASEAN
: Negotiations with ASEAN-7 (minus
Cambodia, Laos, Myanmar) started in 2007, but
suspended in 2009.
IN FORCE
The EU had FTAs in force with four
out of 14 Asia Pacific states in 2020.
Together, they
potentially cover
58 percent of EU
trade in the region.
UNDER NEGOTIATION
As of 2020, the EU is in FTA negotiations
with three of the 14 Asia Pacific states.
ON HOLD
As of 2020, FTA negotiations are on
hold with three Asia Pacific countries...
...as well as with ASEAN.
REMINDER
TTIP negotiations between the EU
and the US.
European
Union
1
2
3
4
1
2
3
2
3
1
7
7
7
7
1
2
3
4
FTA Depth Index
Japan
: FTA in force since 2019. 2020 trade
volume potentially covered: 125bn USD.
South Korea
: FTA in force since 2015. 2020
trade volume potentially covered: 102bn USD.
Singapore
: FTA in force since 2019. 2020
trade volume potentially covered: 47bn USD.
Vietnam
: FTA in force since 2020. 2020 trade
volume potentially covered: 49bn USD.
Australia
: FTA under negotiation since 2018;
last round in February 2022.
Indonesia
: FTA under negotiation since 2016;
last round in November 2021.
India
: FTA under negotiation since 2007;
last round in 2013; paused until decision to resume
made in 2021; last round in June/July 2022.
Philippines
: FTA negotiations started in 2015;
no negotiations scheduled since 2017.
Malaysia
: FTA negotiations started in 2010;
paused since 2012.
Thailand
: FTA negotiations started in 2013;
no negotiations scheduled since 2014.
ASEAN
: Negotiations with ASEAN-7 (minus
Cambodia, Laos, Myanmar) started in 2007, but
suspended in 2009.
IN FORCE
The EU had FTAs in force with four
out of 14 Asia Pacific states in 2020.
Together, they
potentially cover
58 percent of EU
trade in the region.
UNDER NEGOTIATION
As of 2020, the EU is in FTA negotiations
with three of the 14 Asia Pacific states.
ON HOLD
As of 2020, FTA negotiations are on
hold with three Asia Pacific countries...
...as well as with ASEAN.
REMINDER
TTIP negotiations between the EU
and the US.
European
Union
4
ASEAN
: Negotiations with ASEAN-7
started in 2007, but suspended in
2009. An EU-ASEAN joint working
group was formed in 2017 and met
three times so far to continue discus-
sions on a region-to-region agreement.
4
1
2
3
2
3
1
7
7
7
7
1
2
3
4
FTA Depth Index
Japan
: FTA in force since 2019. 2020 trade
volume potentially covered: 125bn USD.
South Korea
: FTA in force since 2015. 2020
trade volume potentially covered: 102bn USD.
Singapore
: FTA in force since 2019. 2020
trade volume potentially covered: 47bn USD.
Vietnam
: FTA in force since 2020. 2020 trade
volume potentially covered: 49bn USD.
Australia
: FTA under negotiation since 2018;
last round in February 2022.
Indonesia
: FTA under negotiation since 2016;
last round in November 2021.
India
: FTA under negotiation since 2007;
last round in 2013; paused until decision to resume
made in 2021; last round in June/July 2022.
Philippines
: FTA negotiations started in 2015;
no negotiations scheduled since 2017.
Malaysia
: FTA negotiations started in 2010;
paused since 2012.
Thailand
: FTA negotiations started in 2013;
no negotiations scheduled since 2014.
ASEAN
: Negotiations with ASEAN-7 (minus
Cambodia, Laos, Myanmar) started in 2007, but
suspended in 2009.
IN FORCE
The EU had FTAs in force with four
out of 14 Asia Pacific states in 2020.
Together, they
potentially cover
58 percent of EU
trade in the region.
UNDER NEGOTIATION
As of 2020, the EU is in FTA negotiations
with three of the 14 Asia Pacific states.
ON HOLD
As of 2020, FTA negotiations are on
hold with three Asia Pacific countries...
...as well as with ASEAN.
REMINDER
TTIP negotiations between the EU
and the US.
1
2
3
China
Australia
: FTA in force since 2015. 2020 trade
volume potentially covered: 168bn USD.
South Korea
: FTA in force since 2015. 2020
trade volume potentially covered: 287bn USD.
Singapore
: FTA in force since 2009. 2020
trade volume potentially covered: 90bn USD.
ASEAN
: FTA in force since 2005. 2020 trade
volume potentially covered: 687bn USD.
China–Japan–South Korea
: FTA under
negotiation since 2013; last round in 2019.
5
6
4
3
1
2
3
4
1
FTA Depth Index
IN FORCE
As of 2020, China had bilateral FTAs
in force with three out of 14 Asia Pacific
states. Another Chinese FTA – with
Cambodia – was concluded in 2020
and entered into force in 2021.
Moreover, China has a regional FTA
with ASEAN.
74 percent of China’s trade is potentially
covered by these agreements.
China is part of the Regional Compre-
hensive Economic Partnership (RCEP),
which entered into force in 2022.
UNDER NEGOTIATION
As of 2020, China is in trilateral
negotiations with Japan and South
Korea.
China’s FTAs range from rather
shallow (ASEAN) to deep
(South Korea). Rollover values
for details.
4
ASEAN
: The China-ASEAN FTA
entered into force in 2005 and was
upgraded in 2007, 2009 and again
in 2015.
China
Australia
: FTA in force since 2015. 2020 trade
volume potentially covered: 168bn USD.
South Korea
: FTA in force since 2015. 2020
trade volume potentially covered: 287bn USD.
Singapore
: FTA in force since 2009. 2020
trade volume potentially covered: 90bn USD.
ASEAN
: FTA in force since 2005. 2020 trade
volume potentially covered: 687bn USD.
China–Japan–South Korea
: FTA under
negotiation since 2013; last round in 2019.
5
6
4
3
1
2
3
4
1
FTA Depth Index
IN FORCE
As of 2020, China had bilateral FTAs
in force with three out of 14 Asia Pacific
states. Another Chinese FTA – with
Cambodia – was concluded in 2020
and entered into force in 2021.
Moreover, China has a regional FTA
with ASEAN.
74 percent of China’s trade is potentially
covered by these agreements.
China is part of the Regional Compre-
hensive Economic Partnership (RCEP),
which entered into force in 2022.
UNDER NEGOTIATION
As of 2020, China is in trilateral
negotiations with Japan and South
Korea.
RCEP
: The mega-regional trade deal entered into force in 2022. It brings
together 15 countries: ASEAN-10 plus China, Japan, South Korea,
Australia and New Zealand.
RCEP Agreement enters into force – RCEP (rcepsec.org)
RCEP members
account for one third of the
world’s population and GDP, making it the largest trade bloc
in history.
India took part in the
initial RCEP negotia-
tions but decided to
drop out in 2019.
China
Australia
: FTA in force since 2015. 2020 trade
volume potentially covered: 168bn USD.
South Korea
: FTA in force since 2015. 2020
trade volume potentially covered: 287bn USD.
Singapore
: FTA in force since 2009. 2020
trade volume potentially covered: 90bn USD.
ASEAN
: FTA in force since 2005. 2020 trade
volume potentially covered: 687bn USD.
China–Japan–South Korea
: FTA under
negotiation since 2013; last round in 2019.
5
6
4
3
1
2
3
4
1
FTA Depth Index
IN FORCE
As of 2020, China had bilateral FTAs
in force with three out of 14 Asia Pacific
states. Another Chinese FTA – with
Cambodia – was concluded in 2020
and entered into force in 2021.
Moreover, China has a regional FTA
with ASEAN.
74 percent of China’s trade is potentially
covered by these agreements.
China is part of the Regional Compre-
hensive Economic Partnership (RCEP),
which entered into force in 2022.
UNDER NEGOTIATION
As of 2020, China is in trilateral
negotiations with Japan and South
Korea.
1
China
Australia
: FTA in force since 2015. 2020 trade
volume potentially covered: 168bn USD.
South Korea
: FTA in force since 2015. 2020
trade volume potentially covered: 287bn USD.
Singapore
: FTA in force since 2009. 2020
trade volume potentially covered: 90bn USD.
ASEAN
: FTA in force since 2005. 2020 trade
volume potentially covered: 687bn USD.
China–Japan–South Korea
: FTA under
negotiation since 2013; last round in 2019.
5
6
4
3
1
2
3
4
1
FTA Depth Index
IN FORCE
As of 2020, China had bilateral FTAs
in force with three out of 14 Asia Pacific
states. Another Chinese FTA – with
Cambodia – was concluded in 2020
and entered into force in 2021.
Moreover, China has a regional FTA
with ASEAN.
74 percent of China’s trade is potentially
covered by these agreements.
China is part of the Regional Compre-
hensive Economic Partnership (RCEP),
which entered into force in 2022.
UNDER NEGOTIATION
As of 2020, China is in trilateral
negotiations with Japan and South
Korea.
1
2
3
USA
IN FORCE
As of 2020, the US has FTAs in force
with three Asia Pacific states.
Together, they
potentially cover
30 percent of US
trade in the region.
REMINDER
US withdrawal from the Trans-Pacific
Partnership (TPP) in 2017.
Negotiations on Transatlantic Trade
and Investment Partnership (TTIP)
until 2017.
Australia
: FTA in force since 2005. 2020
trade volume potentially covered: 38bn USD.
South Korea
: FTA in force since 2012. 2020
trade volume potentially covered: 127bn USD.
Singapore
: FTA in force since 2004. 2020
trade volume potentially covered: 58bn USD.
7
7
7
1
2
3
FTA Depth Index
Each of the three FTAs reaches the
maximum depth value of seven.
Rollover values for details.
Canada
Chile
Mexico
Peru
TPP
: In 2017, the Trump administration decided to
withdraw from the Trans-Pacific Partnership (TPP), a
trade deal that would have brought together 12
countries from both sides of the Pacific: Australia,
Brunei, Japan, Malaysia, New Zealand, Singapore
and Vietnam on the western side, Canada, the US,
Mexico, Peru and Chile on the eastern side.
CPTPP
: The remaining 11 TPP parties concluded the
Comprehensive and Progressive Agreement for Trans-
Pacific Partnership (CPTPP) in 2018 as succeeding
agreement without the US.
The
CPTPP outcomes and background documents | Australian Government Department of Foreign Affairs and Trade (dfat.gov.au)
CPTPP
represents about 13 percent of global GDP
and about 7 percent of the world’s population.
In 2021, China formally requested to join the trade
bloc.
USA
IN FORCE
As of 2020, the US has FTAs in force
with three Asia Pacific states.
Together, they
potentially cover
30 percent of US
trade in the region.
REMINDER
US withdrawal from the Trans-Pacific
Partnership (TPP) in 2017.
Negotiations on Transatlantic Trade
and Investment Partnership (TTIP)
until 2017.
Australia
: FTA in force since 2005. 2020
trade volume potentially covered: 38bn USD.
South Korea
: FTA in force since 2012. 2020
trade volume potentially covered: 127bn USD.
Singapore
: FTA in force since 2004. 2020
trade volume potentially covered: 58bn USD.
7
7
7
1
2
3
FTA Depth Index
European
Union
TTIP
: The US and EU tried to negotiate a deep and compre-
hensive transatlantic trade bloc – the Transatlantic Trade and
Investment Partnership (TTIP) – between 2013 and 2016.
As of
Why the Transatlantic Trade and Investment Partnership Is More Important Than TPP (thediplomat.com)
2016
, the TTIP would have represented about one third
of global GDP and about 11 percent of the world’s population.
However, under President Donald Trump the negotiations,
which had already been difficult before (e.g. in regard to
common standards), came to a halt until further notice.
Although this has not changed under Biden’s administration,
the establishment of the Trade and Technology Council (TTC)
in June 2021 nonetheless saw renewed transatlantic coope-
ration on a broad spectrum of trade and investment issues.
USA
IN FORCE
As of 2020, the US has FTAs in force
with three Asia Pacific states.
Together, they
potentially cover
30 percent of US
trade in the region.
REMINDER
US withdrawal from the Trans-Pacific
Partnership (TPP) in 2017.
Negotiations on Transatlantic Trade
and Investment Partnership (TTIP)
until 2017.
Australia
: FTA in force since 2005. 2020
trade volume potentially covered: 38bn USD.
South Korea
: FTA in force since 2012. 2020
trade volume potentially covered: 127bn USD.
Singapore
: FTA in force since 2004. 2020
trade volume potentially covered: 58bn USD.
7
7
7
1
2
3
FTA Depth Index
EU
China
EU
USA
China
EU
USA
China
EU
USA
China
EU
EU
China
EU
EU
China
Singapore
Singapore
ASEAN
ASEAN
RECEP
RECEP
Australia
Australia
Japan
Japan
South K.
South K.
Cambodia
Cambodia
India
India
Indonesia
Indonesia
Vietnam
Vietnam
China
EU
USA
USA
EU
China
AP
AP
EU
USA
China
AP
33.2%
33.2%
19.5%
19.5%
13.4%
13.4%
Asia Pacific
29.3%
20.0%
17.5%
China
EU
USA
18.3
18.3
12.3
15.0
11.9
15.8
10.7
5.8
4.3
Share of world population
Share of global GDP (PPP)
Share of global trade volume
In the first chapter we investigated three key benchmarks. Among
the Big 3, China has laid claim to being the global leader on all
benchmarks, with the EU and the US coming in only second or third.
In the second chapter, we looked at trade with the 14 Asia Pacific
states as well as between the Big 3. China’s trade relations with the
Asia Pacific (AP) are by far the strongest, followed by the US. The EU
brings up the rear.
In the third chapter, we examined the state of play concerning FTAs.
With four FTAs, all of which reach maximum depth, and three
more under negotiation, the EU shows a comprehensive and
proactive approach. China is strongly involved in regional FTAs,
although they tend to be shallower. The US is not actively engaged
in FTA negotiations in the region.
Population
GDP (PPP)
Trade Volume
Trade Relations
FTAs
Key Findings
Authors of the Study:
Dr. Cora Jungbluth
Dr. Cora Jungbluth
and
Stefani Weiss
Stefani Weiss
Visual Concept and Realization:
Dollacker & Waldik GbR
Dollacker & Waldik GbR
©
Global & European Dynamics - (globaleurope.eu)
Bertelsmann Stiftung, Program Europe’s Future, November 2022
Picture: Singapore Skyline, Unsplash
FTAs to be pushed
ASEAN to be approached
RCEP and CPTPP to be targeted
A long-term vision to be thought through
1
2
3
4
The EU should look more carefully at compliance with FTAs and
regularly review whether FTAs need to be updated. In any FTA
negotiations, the EU should move more rapidly to a conclusion and
subsequent enforcement.
The EU should put a stronger focus on its region-to-region relations
with ASEAN and strive for an EU-ASEAN FTA to get a better footing
in the region.
The EU should start talks with the RCEP and CPTPP about possible
cooperation, ranging from observer status to associated or even full
membership.
The EU should strengthen the
Asia-Europe Meeting (consilium.europa.eu)
Asia-Europe Meeting (ASEM)
process
and advance it to an important cooperation platform with the
long-term vision of establishing the Free Trade Area of Asia and
Europe (FTAAE). The increasing politicization of economic relations,
however, must be kept in mind, while enhancing cooperation.
Recommendations for the EU concerning
the Asia Pacific