Can Juncker's Visit To The United States Ease Trade Disputes Between The United States And Europe?

- Jul 30, 2018 -

European Commission President Jacques Juncker is scheduled to visit the United States on 25 th to meet with US President Donald Trump. Against the backdrop of the U.S. government provoking a trade dispute with Europe, Juncker's trip will ease the situation and prevent the escalation of confrontation and become the focus of international public opinion.

In the face of Trump, who has publicly called the EU an "enemy," Juncker has also come prepared to stick to a tough stance and prepare for counteraction, while expressing a willingness to negotiate a resolution to the dispute. But it remains to be seen whether the EU's "hard and soft" strategy will work.


answer blows with blows


EU trade commissioner Malmstr ö m, who will accompany Juncker on a visit to the United States, as the main policy maker of the European Common Trade Policy, both advocate a reciprocal response to U.S. trade protection policy.


Since June 22, the European Union has imposed retaliatory tariffs on imports of about 2.8 billion euros worth of goods from the United States after the U.S. imposed tariffs on EU steel and aluminium products on June 1. In response to Trump's threat to impose a 20 percent tariff on cars imported from the EU, Malmstr ö m said last week that the EU was preparing a list of countermeasures.


The European Union, first of all, is strategically aware that, in the face of the aggressive Trump administration, a compromise will only be regarded as a weakness and a greater concession in the future, followed by the EU's support for multilateralism and free trade, which is also in line with the long-term interests of the EU itself.


At the same time, the EU also has a lot of cards to play. First, the introduction of reciprocal countermeasures, focusing on some industries in the United States. U.S. motorcycle maker Harley-Davidson has said it has decided to shift some of its production to overseas factories to avoid EU tariff retaliation. Second, seek new partners and strengthen economic and trade negotiations and cooperation with other major economies. Juncker signed an economic partnership agreement with Japan in Tokyo before his visit to the United States. In the context of the withdrawal of the United States from the Trans-Pacific Partnership Agreement (TPP) and the Transatlantic Trade and Investment Partnership Agreement (TTIP), Europe and Japan have accelerated the conclusion of the Agreement, which is aimed at the protection of the United States. The implication goes without saying.


The EU can also use anti-monopoly laws to put pressure on American companies. A few days ago, the European Commission imposed a huge 4.34 billion euro fine on Google for violating EU antitrust rules. It was Google's second big ticket in a year. Given the backdrop of the current escalating trade confrontation between the US and Europe, this is intriguing.


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