Uncertainty and a certain agitation surround the European Union in the face of the new administration of Donald Trump at the head of the White House. The drift in trade relations with the United States has become a concern for member states. It is for this reason that the Economic Vice-President of the European Commission, Valdis Dombrovskis, stressed the importance maintain close relations with Washington, especially in the face of the complex geopolitical situation.
EU trade ministers met this Thursday in Brussels in a meeting during which the relationship with the United States was discussed. “It is clear that the United States is our strategic ally. This is why it is important to maintain close engagement, especially in the current geopolitical situation,” said the Latvian commissioner. As part of his argument, he highlighted that Brussels and Washington represent one of the greatest relations trade and investment in the world, which is why the economic stakes are important.
The ghosts of trade tensions, tariff auctions and diplomatic tensions of previous Republican legislatures warn the bloc, which, in a strategy of persuasion, insists on the need to maintain trade relations. It’s not that this is an illusory fear, Trump himself announced during the electoral campaign his intention to apply additional customs duties to imports of European products.
The overall sentiment expressed by trade officials at the meeting is the need to unitedly confront trade policies that the Trump administration could lead to. “We are ready to respond in a coordinated and precise manner” added the Latvian commissioner.
Spain recommends, in this sense, building bridges with Washington. The Secretary of State for Commerce, Amparo López, indicated upon her arrival at the meeting that the Trumpist diatribe “This can be presented as a challenge, but it can also be a pragmatic approach. It is an administration with which we have already worked.” Furthermore, he added that the United States is a top trading partner for Spain, given the significant investments on the other side of the Atlantic on the Spanish market.
The EU’s approach is to continue opening up to the world while diversifying its trade relations with other countries. The vice-president of the community advocated continuing to maintain the network of EU agreements, promoting export opportunities and diversify the offer to strengthen the economy and resilience.
Mercosur
The trade leaders’ conversation also revolved around the Mercosur agreement. After years of negotiations, Brussels believes that the conditions for concluding the pact are met. The Secretary of State for Commerce speaks of “substantial progress“for next December, after the G20 round of negotiations in Brazil. Dombrovskis does not set a date to resolve the disagreements of an agreement forged over 20 years, which speaks of progress in the negotiations.
The German Minister of Economy and Climate, Robert Habeck, wants to give impetus to the debate, who during the meeting defended the idea of reaching to a conclusion “as soon as possible”, despite the reluctance expressed by France which, anchored in the complaints of the agricultural sector, speaks of advantageous conditions for imports of products from Mercosur countries compared to the standards that the EU must respect.
The French refusal was, in a way, reinforced by the doubts expressed by Belgium or Poland, even if the Latvian commissioner maintains that the objective is to conclude the agreement as quickly as possible. “We are making good progress, following technical negotiations and taking note at the political level. “The conditions for an agreement are met.”» Dombrovskis added, highlighting the difficulty of setting a date for the end of the talks.
