The European Union trade and economic authorities urged calm approach to handle international trade division, as Brussels is concerned about the spread of global trade friction to the internal stability of the EU.
Christian rose — the best of the European Union authorities urged trade negotiations, rather than bans as way to correct the imbalance in the international exchange of goods and services. EU officials say that the measures of protectionism and economic nationalism in other parts of the world pose serious challenges to economic growth unit.
EU Commissioner for economic Affairs Pierre Moscovici expressed hope that “common sense” will prevail in the mounting differences between the largest economies in the world. This comes as the EU was exposed to international trade headwinds, especially in light of the German Locomotive of the economy, based on exports of high-tech and industrial goods.
“Rhetoric and statements of recent months should be a problem for all of us, for those who believe in the benefits of free trade, which, of course, must be subject to appropriate rules and safeguards,” Commissioner Moscovici said.
This comes as the EU is in a difficult negotiating the British exit from the EU, which might, after all, in the end, without a bilateral trade deal, threatening disruptions in trade across the channel.
In addition, U.S. President Donald trump to slap up to $100 billion of Chinese export trade restrictions, and has already imposed on us the industrial metals tariffs, the EU is beginning to feel the squeeze in both manufacturing and investment.
“The biggest risk that we see the rise of protectionism,” said Moscovici.
This happens mostly in the context of the accusations after the British exit from the EU, the UK aims to protect its domestic market against the fact that some of the most avid Brexiteers to see how “unfair” trade practices of the EU.
However, the EU is also concerned with the rates of us metals in the administration of the tramp there’s only bilateral exclusion of some key us trading partners, such as Germany.
This puts pressure on the unity of the EU, which is becoming increasingly fragile in the Wake of recent election victories of nationalist parties in the EU, including in Italy and Austria.
“We have not offered us anything, we are not going to offer them anything to get relief from rates, which we believe is not in compliance with the WTO,” said EU Commissioner for trade Cecilia Malmstrom.
Brussels also more skeptical of economic nationalism, as despite the relative EU’s economic self — sufficiency, some countries-members of the EU can try to change in EU trade rules and practices. This happens against the background of the two main internal differences in the EU — a North-South and East-West divide.
Differences between the North and the South of Europe-a long and painfully visible after the global economic crisis of 2008-2009. The peoples of the European North — such as Germany — are in favor of tighter monetary policy, lower inflation and fiscal conservatism. The European South has long been dependent on inflation and debt growth model, aiming to reduce the interest rate, the larger the Central Bank buying bonds, and unlimited borrowing.
However, these differences are insufficient to dismantle the unity of the EU, and currently, the division into East and West there is a large protuberance, which — in the Wake of global trade frictions — could prove to be catastrophic for the single European market.
Since the mid-2000s, the patterns of intra-European trade was determined by the mass of German exports of industrial goods and technologies in the countries of Eastern Europe, accompanied by a substantial inflow of German investment in these countries. This has made many of the local industrial enterprises are unprofitable and caused the closure of the plant, effectively destroying domestic production.
The increase in investment from the European West to the East are also subjected Eastern Europe to international financial risks.
Now, as nationalist parties are gaining popularity in Eastern Europe and domestic political tensions mount, especially, friction between Brussels and Eastern European capitals on the issue of mass migration — the pressure of global trade failures can provoke protectionist sentiments in the European East.
This is the main reason why the EU malmström emphasized “the commitment of the unit to open, equitable trade rules at a time when others are questioning it.”
Despite the us-China trade disputes can have a direct dissemination to the EU in Brussels understand that their main task is the internal structural fragility of the bloc, said the President of the United States trump the obligation to negotiate with national governments, not supranational structures like the EU.
Sourse: sputniknews.com
