On Wednesday 29 January, the European Commissioner for Trade and Economic Security, Maroš Šefčovič, endorsed the European Union’s approach to its future relations with the United States in the wake of Donald Trump’s accession to power; this was in line with the approach set out by President of the European Commission, Ursula von der Leyen, in Davos (see EUROPE 13562/1).
“Nobody is interested in escalating matters”, Mr Šefčovič told the European Parliament’s Committee on International Trade. He indicated that the EU was ready to get involved and find mutually beneficial solutions in commercial areas (investment, increased LNG purchases, economic security) of common interest, while protecting “its own interests and values in the event of disruptive scenarios”. To achieve this, “unity is our best asset”, said the Commissioner, who will personally make contact with the United States Secretary of Commerce; this is expected to be confirmed as Howard Lutnick this Friday.
In response to a question from Brando Benifei (S&D, Italian), Mr Šefčovič pointed out that the European and American economies were the most intertwined in the world, with trade totalling €1,500 billion. According to its figures, the United States faces a deficit of €154 billion in its trade in goods with the EU. The surplus on services is €104 billion. In the end, the US deficit was only “€50 billion, noted the Commissioner, adding that €300 billion of European savings were invested in US capital markets every year.
At this stage, the United States has not taken any trade measures that directly target the EU. Donald Trump has signed an executive order asking his administration to assess the trade imbalances facing the United States by 1 April.
In the meantime, the EU is poised to react, if necessary, and is trying to broaden its discussions with other partners. Anna Cavazzini (Greens/EFA, German) also suggested setting up “an international coalition” to enable countries or jurisdictions to react in the event of major trade tensions erupting with the United States.
Maroš Šefčovič mentioned a “long list” of partners – South-East Asia, the Gulf States – who are ready to deepen their trade relations with the EU, and whom he believed to be “reliable and predictable”.
The recent finalisation of negotiations with Mercosur and Mexico (see EUROPE 13560/1) and the relaunch of negotiations with Malaysia (see EUROPE 13561/17) illustrate this desire to “diversify” the EU’s trading partners, according to the Commissioner.
Mr Šefčovič praised the revised free trade agreement with Mexico, which has become the EU’s second largest trading partner in Latin America. The agreement will secure supplies of critical raw materials, remove 95% of trade barriers to agricultural and fisheries products, and will protect 568 designations of origin.
“Mexico imports more than €2 billion worth of European agricultural products every year, including €200 million worth of dairy products”, argued the Commissioner. He added that the chapter on sustainable development would be “similar” to that negotiated in the bilateral agreement with Chile.
Lastly, Mr Šefčovič reported that discussions had been relaunched with India, where the college of Commissioners will be visiting in February. (Original version in French by Mathieu Bion)