Trade Commissioner Cecilia Malmström’s is currently in Washington seeking to ensure that the EU is exempted from the taxes enacted by United States President Donald Trump on imports of steel and aluminium into the US, due to come into force on 23 March (see other article). No matter the outcome of that mission, the heads of state and or government of the 28 EU countries are expected, at the European Council on 22 and 23 March, to make clear their unity in the firm response to be given to Trump, while leaving the door open to dialogue to smooth transatlantic trade friction.
EU leaders “should send a message of support to the actions of the European Commission so far and to the recommendations that the Commission will make for the future”, a high-ranking official close to the issue said on Tuesday.
“We must prepare for all possible scenarios”, stated European Council President Donald Tusk in his letter of invitation to leaders, giving assurances, at the same time that “the EU’s response will be responsible and reasonable”.
“Free and fair trade has created millions of jobs in Europe, and elsewhere, contributing to peace and stability all around the world. As Montesquieu put it, ‘the natural effect of trade is to further peace’”, he added.
The European Council will, then, argue for “more trade, not less”, Tusk said, and call for discussions on adoption of free-trade deals with Japan and Singapore to be speeded up and for talks with Mercosur and Mexico to be finalised.
EU leaders are likely to point out that overcapacity in steel is an issue that requires global solutions within the framework of the WTO and G20, our source said.
Lastly, the European Council will no doubt stress that “we should protect (the transatlantic) relationship and should always seek solutions in dialogue and consultation”, the source added.
“Transatlantic relations are a cornerstone of the security and prosperity of both the United States and the European Union. Given the importance of this relationship, we should continue to engage with the US in order to strengthen the transatlantic economic relationship, not weaken it. Despite seasonal turbulences”, stressed Tusk in his letter of invitation.
With Trump, who has never responded to EU calls to re-open negotiations on a bilateral free-trade agreement (TTIP), sparking controversy on access to the transatlantic market which goes beyond the issue of steel (see EUROPE 11979), on Thursday, the European Council is unlikely to call for talks, which have been at a standstill since the departure of previous US President Barack Obama, to be relaunched.
“The consensus is there (among the member states) for trade talks (with the United States) on specific problems, but there is no consensus on a restart of TTIP, even though some capitals say that it would be a good approach”, according to our source. (Original version in French by Emmanuel Hagry)