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EU launches last offer to us to avoid trade war

Brussels offers advantages to American cars if the threat of tariffs is withdrawn

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EU launches last offer to us to avoid trade war

Europe is rushing last attempt to avoid a trade war with United States. Two weeks after truce that President Donald Trump granted to steel and aluminum from European Union, European Heads of State and Government declare mselves willing to improve exchanges if Washington buries threat of applying Tariffs. Brussels was agree to negotiate four chapters, including an improvement in access of American cars to European market. In return, he claims that community club companies can opt for public procurement in United States.

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Between French emphaticity and German caution, EU has found a middle point that concites accession of all its members. Europe believes that commercial relationship between two blocs, most intense in world, is better and is ready to talk about specific aspects. There is only one inexorable condition: withdrawal of threat of tariffs. "If United States wants to treat Europe as an ally, we are willing to talk about several things; Orwise, EU will defend its interests, "summed up French President Emmanuel Macron at end of Community Club summit with Balkan partners in Sofia.

The European Commission, with exclusive powers on trade policy in EU, presented four items to discuss at leaders ' Dinner last Wednesday. The most attractive — also hardest to negotiate — is to give US some advantages in exporting industrial goods (including automobiles). Washington calls for a lowering of tariff that EU applies to current 10% US cars at 2.5% that support European vehicles sold across Atlantic. Brussels would be willing to grant it, in exchange for an opening of Trump administration in most attractive section for Europe: that its companies can overcome American protectionism and attend some public bidding.

It is more than doubtful that Washington would agree to a lawsuit that could not be achieved in negotiating ambitious trade agreement that Brussels tested with administration of Barack Obama. But delving into this process can at least push away immediate threat of tariffs. More prudently than Macron — a eventual trade war would hurt Germany more than France — Chancellor Angela Merkel has highlighted: "We have a common position. We want a permanent exemption from tariffs and n we will be willing to talk about how to mutually reduce trade barriers. "

Gas Sales

Beyond industrial section, EU proposes to increase volume of liquefied natural gas that United States has exported for a few years, thanks to development of fracking. These transactions, now very limited by technical barriers, would also allow EU to reduce dependence of suppliers like Russia, which provides almost 40% of gas that imports community club. Finally, Brussels offers to agree on improvements in rules of operation of World Trade Organization, which disgust United States, and to test a regulatory convergence (for example, in car safety) that will hinder Trade.

The big question lies in wher se prospects will suffice for Trump to renounce trade war with Europe. The setbacks tipped since ir arrival in power — last, nuclear agreement with Iran — are not encouraging. Community sources emphasize that in this case interest of American industry is greater and that this can appease belligerentness of American leader. But ultimately, leaders are aware that last decision only depends on Trump. "This is today main problem of transatlantic relations: that y are unpredictable," concluded President of European Council, Donald Tusk.


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