Trade – EIAS

EU-China Trade: Facilitating Bilateral Trade Through a Joint Fiat-Backed Stablecoin

This EIAS Briefing Paper explores the implementation of a joint, fiat-backed stablecoin as a tool for facilitating EU-China Trade, which reached a valuation of approximately 762 billion USD in 2024. Despite the high volume of Bank-to-Bank (B2B) transactions, bilateral trade remains tethered to inefficient financial infrastructure characterised by high foreign exchange (FX) markups, third-party reliance, and settlement latencies. These frictions impose systemic costs and lock up billions in working capital. This paper proposes a private fully-collateralised stablecoin pegged to a 50/50 basket of the Euro (EUR) and Offshore Renminbi (CNH). Blockchain architecture and smart contract automation offers the potential of near-instantaneous completely transparent settlement and reductions in transaction costs to a fraction of traditional transfers.

Converging Interests of Europe and ASEAN in a (More) Multipolar Global Economy

The 47th ASEAN Summit in Kuala Lumpur took place amid rising geoeconomic uncertainty, reaffirming ASEAN’s commitment to rules-based trade and welcoming Timor-Leste as its 11th member. The meeting was overshadowed by US President Trump’s pursuit of bilateral deals with individual ASEAN states, exposing varying national vulnerabilities to US tariff measures and their economic fallout. In this context, the EU has a key opportunity to strengthen its role as a stable and predictable economic partner, underlineing the opportunity for a deeper ASEAN-EU partnership grounded in predictability, mutual benefit and in respect of ASEAN’s unique regional order.

The EU-Indonesia FTA: Balancing Economic Pragmatism and Environmental Principles

The EU-Indonesia Free Trade Agreement negotiations represent the need for a fundamental balance between economic pragmatism and environmental responsibility. This exemplifies the broader challenges of global trade in the 21st century, with small and medium enterprises (SMEs) bearing a major part of the disproportionate burden created by these contradictory demands.

EU-India Relations: Progress and Pitfalls

In May 2024, Narendra Modi was re-elected Indian Prime Minister (PM), winning a third term. In doing so, Modi ensured the continuity of his political programme, including a commitment to forge a closer relationship with the European Union (EU). The combination of India’s General Election result with the June 2024 European election has created a momentum for the two partners to reassess their bilateral relations. Weighing in on this dynamic, the EU and its Member States have been encouraging India’s engagement to push the development of its infrastructure network and to address social and human rights concerns.

Combating Illegal, Unreported and Unregulated (IUU) Fishing in Vietnam – The EU’s Yellow Card

Illegal, unreported and unregulated (IUU) fishing practices have been a critical challenge in Southeast Asia due to their environmental impact and related economic losses, resulting in the weakening of coastal communities. Notwithstanding the efforts being taken at the national level, mitigation and addressing the issue has proved to be challenging in Vietnam. The European Union (EU), a crucial trading partner for the country, has been pressuring Vietnam to combat IUU fishing. With the 5th EU inspection approaching in October 2024, Vietnam has been positively ramping up its efforts. What further action needs to be taken to lift the EU’s yellow card? How can the root causes of IUU fishing be addressed and how can the EU effectively provide adequate support in tackling this?

Reassessing Dependencies: The EU’s Path to De-Risking in Light of China’s Industrial Ambitions

China’s industrial policies are reshaping global trade dynamics, prompting the European Union (EU) to reassess its approach towards risk mitigation. As China strengthens its domestic supply market, particularly in high-tech and renewable energy sectors, EU policymakers are progressively facing pressure to decrease their reliance on China in sectors like critical minerals, magnesium and lithium. Amidst rising geopolitical tension and increasingly proactive action towards addressing the climate crisis, industrial policies have moved to the forefront and have gained traction worldwide, exerting significant influence on the international market. As a consequence, European Commission President Ursula von der Leyen presented the concept of ‘de-risking’, which has emerged as a major term among policymakers. The approach underscores the imperative for enhanced understanding, communication and common agreement between China and the EU to foster fair competition globally.

Weighing the Pertinence of Dialogue and Diplomacy in Northeast Asia: The China-Japan-South Korea 2024 Trilateral Summit

More than four years after their last trilateral summit and against a backdrop of heightened geopolitical tensions and regional security threats, the long-awaited 9th summit between the Republic of Korea (ROK or South Korea), the People’s Republic of China (PRC) and Japan finally took place in Seoul on 26-27 May 2024.

Thailand–EU FTA Negotiations: Hidden Hurdles and Easy Wins

Despite confidence from leaders, both parties are walking a tightrope between their international interests and domestic anxieties.

The EU’s Strategic Role in the Global Semiconductor Supply Chain and its Implications for Clean Energy

As our global economy becomes increasingly digital, AI-driven, and reliant on 5G networks, the demand for semiconductors will only continue to surge. These components are not only fundamental to technological advancement but crucial for geopolitical stability.