New agreements and trade relations between Europe, Asia and the USA
Germany will push for a trade agreement between the European Union and Indonesia to reduce its dependence on raw materials from China. An agreement between the EU and Southeast Asia’s most populous country will create an economic area with a population of 700 million. There is also a growing opportunity for trade talks between the EU and the South American economic organisation – Mercosur, Mexico, Australia, India and China.
According to a report by Amcham Finland, Finland’s preparation for and entry into NATO has had a significant impact on the country’s trade, with Finnish exports to the US increasing by 38.2% in 2022. Exports of goods were 68% higher than the year before, while services increased by 9.7%. Finland’s accession to NATO has boosted trade and investment, especially in the IT and green technology sectors, and has improved the country’s ratings and strengthened its image in the US.
India and Russia are considering a free trade agreement (FTA), which will deepen the trade relationship between them that has been developing since the outbreak of war in Ukraine. Imports from Russia to India, mainly related to oil purchases, have more than quadrupled, exceeding $46 billion over the last fiscal year. In turn, there is demand in Russia for Indian road construction materials, equipment, chemicals, and pharmaceuticals. Indian authorities are also pursuing free trade talks with the UK, the European Union and the Gulf Cooperation Council. Russia, on the other hand, is seeking closer cooperation with other South Asian countries. It recently agreed to settle in Chinese yuan for constructing a nuclear power plant in Bangladesh and is discussing oil exports to Pakistan.