20 minutes agoG20: EU managed to make agreement in Sam, not Trump
Periskopi(7 years ago)
(7 years ago)World trade can also be done against the will of President Trump. With the completion of the trade agreement between the European Union and the countries of South America, known as the “Mercedes” demonstrated to President Trump that his course is wrong. At a time when the rest of the world pulls down trade barriers and opens [...]
World trade can also be done against the will of President Trump. With the completion of the trade agreement between the European Union and the countries of South America, known as the “Mercedes” demonstrated to President Trump that his course is wrong. At a time when the rest of the world undermines trade barriers and opens new markets, Trump isolates himself with customs.
At the G20 summit in Osaka, the president who follows the union road indicated, he is not willing to give up punitive customs. They have become the most beloved instrument of hammer diplomacy.
This instrument still has an effect because the U.S. is economically strong and may allow itself to have these import customs, which the American consumer eventually pays for. But if the condition falls, the situation can change quickly. The International Monetary Fund, meanwhile, warns of negative impacts on the world economy. The walls of isolation will soon have a negative effect.
The EU and the EU „Mercedes” follow another route, and this was shown at the summit. With the deal reached, which was negotiated nearly 20 years, they show that international co-operation is really not easy, but is possible in Trump's times and against the will of the American government.
EU moves ahead
With this “Deal” between Europe and South America, the world's largest trade zone is created. To date, this label was held by Japan's free trade zone - The EU, which is reality by the beginning of this year. Europe is the largest world trade priority. The EU has closed more than 70 trade agreements. The Vietnam deal follows this Sunday, another country Trump threatens with customs penalties.
Of course, the deal with Merchur countries is not in effect yet. It must be ratified. Criticals especially about meat export regulations and ecological restrictions have increased. There's still going to be fights. But there is a compromise in the end. Other trade agreements, such as those with Canada or African countries, have their faults and advantages, but the principle remains the same: Trade, exchange, cooperation instead of nationalism, isolationism - world trade.
Message for Donald Trump
At the G20 summit in Japan, the US tried again to insert the World Trade Organization axe with the refusal to send judges to the WTO appeals court. The U.S. government propagands a reform of this organization that should primarily be useful to American interests. This doesn't work. The WTO makes sense only when all members submit to the same rules. Not only do the United States and other countries, such as China or Russia, attempt protection from competition. This should stop if the World Trade Organization is to reform and trade expand. At this summit the G20 grouping did not mark any step forward, despite rhetoric.
Therefore, it is good news that the EU and Mercedes countries agreed to a trade agreement just during the G20 summit. So far the US has not achieved any „deal” or left Trump with any powerful economic partner. With the biggest trading partner, Europe is all left in the middle. This situation has to change. The message for Donald Trump, which the White House is turning into the world's largest customs office, must be: „Make the grate beam again! ” / DW
