Trump's commercial truce with Europe has a familiar feeling: it reflects the path of Obama



[ad_1]

The Germans were among the most outspoken opponents of a transatlantic trade agreement, even though the country's auto industry was strongly in favor of removing tariffs. In 2016, thousands of people marched in Berlin to protest the proposed agreement

When Mr Trump was elected, negotiations failed.

One of the most toxic parts of the previous agreement, an investment court suing governments for unfair treatment, would probably not be part of future talks. Trump's advisers criticized these courts and insisted they remove them from NAFTA

Opposition groups said Thursday they would closely monitor what emerges from this new attempt dismantling trade barriers. Shira Stanton, trade policy strategist for Greenpeace, said in a statement sent by e-mail: "The world's two largest economies must not start a race to the bottom, endangering labor rights, health public, sustainable agriculture and the environment. "If the EU and the United States try again to water down the essential guarantees behind closed doors, they should expect the same public opposition."

Then there are the practical obstacles to the negotiation of a commercial pact, a process that usually takes years. According to the rules of the World Trade Organization, any future pact should cover almost all trade between the United States and the European Union, which makes it difficult to exclude many sectors. Although Europeans said agriculture would not be included in the talks, many other industries, from manufacturing to services, could respond to efforts to reduce tariffs and regulations who protect them.

Europeans are anxious not to openly flout. When Japan and the European Union signed a trade pact earlier this month, they have put in place some 15-year provisions to mitigate the impact.

"If they want to do it, they can," said Mr. Felbermayr. "A trade war would be much worse than a free trade agreement, and no one will oppose that."

[ad_2]
Source link