Canadian Prime Minister Mark Carney is spearheading efforts to bring the European Union and the Indo-Pacific trade bloc Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), closer together in response to renewed tariff threats from U.S. President Donald Trump, Politico reported.

Axar.az reports that the EU and the 12-nation CPTPP are preparing talks this year aimed at aligning supply chains and potentially creating a powerful economic alliance of roughly 1.5 billion people across nearly 40 countries. The discussions focus on “rules of origin,” which determine the national source of goods and would allow more seamless, low-tariff trade through a mechanism known as cumulation.

Carney called on “middle powers” in Davos to counter trade coercion after Trump threatened tariffs on Denmark’s EU allies over Greenland. Canada has since actively promoted the initiative, sending senior officials to consult CPTPP members.

While some EU officials are enthusiastic, Brussels currently prioritizes more immediate supply chain coordination and trade diversification. However, business groups — including Germany’s chamber of commerce — strongly support harmonizing trade rules to strengthen economic resilience and reduce dependence on U.S.-centered trade flows.

The proposed cooperation is viewed as a strategic hedge against Trump’s protectionist policies and broader fragmentation of global trade.