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Donald Trump and European Union leaders retreated Wednesday from a trade war by reaching an agreement to reduce tariffs, barriers and subsidies.
The EU also agreed to buy billions of US dollars "1965-19002" So we had a big, big day, "said the US President in the White House Rose Garden , alongside Jean-Claude Juncker, the American president. President of the European Commission and proclamation of a "new phase" in US-European relations.
"We agreed today to work together on zero tariffs, zero non-tariff barriers and zero subsidies for non-automotive industrial goods." Trump said to the applause of several members of the House and Senate present.
Both parties agreed that there will be no escalation of the dispute at the moment and no new tariffs will be imposed. Trump and Juncker also said that they would "resolve" the steel and aluminum tariffs imposed by the United States that sparked the conflict.
But their remarks represent a breakthrough after weeks of stalemate. Moreover, the relaxation could easily be undone at the moment when the negotiations would begin seriously.
The experts recommended caution. Bart Oosterveld, director of the Global Program on Business and Economics at the Atlantic Council think tank in Washington, said: "Avoidance of a disaster does not happen. is not a success. What I think we have seen is the resumption of some basic dialogues. Individual elements such as soy and LNG [liquefied natural gas] are not mbadively significant. I do not think that the EU would accept a major overhaul of trade terms without removing steel and aluminum from the table. "
Recalling many differences between the United States and the EU, ranging from the Paris Agreement to Iran Oosterveld hailed the signs of cooperation." Inasmuch as they have agreed to continue to speak and to adopt a common approach to Chinese business practices, it is important. It puts everything on a somewhat more stable basis. To see them make joint declarations on the WTO, for example, is a positive element that we have not seen for a long time. But those of us who care about a rules-based order on world trade should not yet make a victory turn. "
The United States also remains on the verge of a total trade war with Trump, taking a step back from its conflicts with Mexico and Canada, and has long criticized the perceived imbalance in trade relations. of America.
Earlier on Wednesday, Trump accused China of being "vicious" and made other threats of retaliation. "China is targeting our peasants, that's all." they know, love and respect me, as a way to make me continue to allow them to enjoy the United States. They are mean in what will be their failed attempt. We were nice – until now! At the surprise press conference, the US president also announced that the EU would start importing more liquefied natural gas and soy from the United States. Trump said: "The European Union will start almost immediately to buy a lot of soy – a huge market – buy a lot of soy from our farmers in the Midwest mainly."
The impact of a trade war on agriculture has been a growing political concern. The White House was forced to pledge a $ 12 billion aid plan to subsidize farmers hit by retaliatory tariffs imposed by China and the EU.
Trump said the EU-US negotiations would be led by a working group of smart people on both sides ", aimed at making trade more" fair "and" reciprocal. "
The United States and the EU, which have a $ 1 billion bilateral trade relationship, would work together to reform the World Trade Organization (WTO) and reduce unfair trade practices. "Trump added:" This was a very great day for free and fair trade, a very big day indeed. "
Skeptics will wonder, though, whether Trump is a reliable negotiator, given his past of contradictions and reversals. Americans have twice reached agreements with China on their trade dispute for Trump to reject them and threaten to worsen the dispute.
Trump has already threatened to impose tariffs on imported cars This prompts Europeans to propose tariffs and American products in retaliation. Trump has long criticized what he sees as an exploitation by car manufacturers in Germany in particular.
But on Tuesday, he tweeted that he had an "idea" for the EU. "The United States and the EU are abandoning all tariffs, barriers and subsidies! It would eventually be called Free Market and Fair Trade! I hope they will, we are ready – but they will not do it! "
The temporary truce on Wednesday was apparently a reprieve for Juncker, who arrived in the hope of staving off a total transatlantic trade war. In a positive mood, he said: "I had intended to close a deal today and we entered into a deal today." We identified a number of areas on which to work together. "
He added:" With regard to agriculture, the European Union can import more soy from the United States, and it will be done. "
"And we have also agreed to work together on the reform of the WTO.Of course, it is understood that as long as we negotiate, unless one of the parties stops the negotiations, we will maintain other tariffs, and we will reevaluate the existing rights on steel and aluminum. "
The European Commission The President then went directly from the White House to the think-tank from the Center for Strategic and International Studies, where he said with relief: "It took three hours or something comm That's it, but we did it. "
He stated," We agree with President Trump that many things must change. There is a global overcapacity in the steel sector that continues to hurt our workers. "
The United States and the EU must cooperate to" rewrite "the rules, he added, without tearing up the book of rules. [ad_2]
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