European Union Trade Commissioner Cecilia Malmstrom said on Thursday, that EU is ready to engage the United States to bolster the relationship affected by the decision to impose tariffs on European metals.
European Union has described the U.S. imposed tariffs as “illegal” and violating World Trade Organization (WTO) rules, “There was no choice other than taking reactionary measures in order to protect the interests of EU, said Malmstrom.
While taking to the seminar she told, “We do not consider EU as a threat to U.S. national security and it is a ridiculous idea to even consider it, we are always open to talk and the whole idea that EU is based on is talk.”
However, the EU will start imposing the import duty of 25% on a range of U.S. products from Friday; this was implemented in retaliation to U.S. tariffs of EU steel and aluminum products earlier this month.
The U.S. has been imposing tariffs on a number of its top trading partners, earlier this week the U.S. threatened China with further $200 billion tariffs which is escalating a conflict, inducing other countries in the world to retaliate.
Malmstrom during her visit to New Zealand to talk about free-trade agreements has highlighted to come together and stand up for an open, transparent and rule-based trade system which is under a threat from escalations between the U.S. and other prominent economies.
I am really worried about the current ongoing disturbing situation, it could ignite a full trade war that will not only affect the involved countries but also disrupt the global supply chains and damage the world economy to a greater extent, said Malmstrom.
She also pointed fingers at U.S. President Donald Trump’s protectionist approach and raised concerns that some countries are playing outside the terms agreed jointly at WTO.
She admired New Zealand and said, New Zealand is a friend and ally, we work together and stand up for common values, interests, open trade, transparent trade and a system that is based on following international trade rules, she told news conference after having a meeting with trade minister New Zealand David Parker.
Frictions with the United States is one side of the picture, China is also dumping its steel and aluminum by subsidizing its state-owned companies which is causing instability in the global markets, and we don’t like that, nobody in the business likes that, she criticized China as well. We need to resolve this issue together but smashing tariffs on one another is not the right way to do it, she advised.
New Zealand is the promoter of free trade, the country has worked hard to renegotiate the Trans-Pacific Partnership (TPP) with Japan after Trump administration decided to pull the U.S. out of it.
The ongoing trade rows between world major powers, is not right, it is not the issue of one country it is the issue of the world economy which is at stake, the EU and other powers should get their heads together these issues as early as possible before it goes beyond the control, said an analyst.