The announcement of 30% tariffs imposed on the European Union creates the worst moment for the transatlantic trade since the GATT (General Agreement on Tariffs and Trade) was initiated in 1947. As US President Donald Trump made it clear in his letter to the European Commission President published on Saturday, the new blanket tariff enters into force on the 1^st of August, separate from already existing sectorial tariffs of 50% on aluminum and steel, and 25% on cars.

Let’s make it clear: nobody benefits from tariffs escalation. We in the European Union reject any action that undermines global trade rules or threatens key European industries. As a Member of the EPP Group and Vice-Chair of the International Trade Committee I stand with the European Commission and the negotiators of DG Trade. They have three weeks until the 1^st of August, to focus on the negotiations and avoid further antagonism, if something like this is possible at all. A transatlantic trade war is bad for both our economies and our people, in the European Union and in the USA equally.

The EU is a firm supporter of the rules-based global trading system. There is no alternative to it, save power-based trade conflict. In times of volatility, the EU has to stand up by its companies and entrepreneurs. European businesses expect clarity, predictability, and understanding of the next steps. They also expect protection against unfair practices, so the EU and all Member States have to stand united, and of course have to prepare for the worst-case scenario, the impossibility to avoid countermeasures. Amid current trade tensions, the EU must remain the predictable partner on the global stage. We are the most open economy in the world and we always live up to our commitments. This is crucial for protecting our economy and the millions of trade-related jobs across Europe.

Trade diversification is the way forward for the EU. A strong and competitive Europe depends on clear, enforceable trade frameworks, so we have to swiftly ratify the trade agreements with Mercosur, Mexico and Singapore. We have to conclude new agreements, with Indonesia and Australia, and more to come. Of course, we have to do more of our homework regarding the internal market of the EU. When there is a will, there is a way, they say. So let’s find the political will for reforms at home, and the power given by unity for calm, but determined transatlantic negotiations.

Article published by stiriletransilvaniei.eu – http://bit.ly/46e8Djr