MNI BRIEF: EU Should Focus On Asia FTAs: Ifo

The European Union should focus on extending trade agreements with Asian countries as well as looking to rekindle U.S. trade talks with incoming President Joe Biden" Clemens Fuest, president of the Ifo institute said Tuesday.

Fuest noted possible disadvantages for Europe from the diversion of trade as a result of the RCEP agreement signed Sunday by leading ASEAN nations. It is possible that European goods will be substituted for products produced in countries which are part of the RCEP and market access for countries outside of the agreement could be more difficult in the medium term, he said.

Strategically crucial is that the agreement makes it easier for China to set rules and standards. It is therefore in Europe's interest to extend trade agreements with Asian countries, Fuest added.