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Caution, skepticism over unpredictable EU-U.S. trade talks: News Analysis
NICOSIA, July 29, 2018 (BSS/Xinhua) – Observers remain cautious and
skeptical after the European Union (EU) and the United States claim to have
averted a trade war with an agreement to “work together towards zero
tariffs.”
The reasons are mainly related to the U.S. President Donald Trump
administration’s unpredictability, the rough relationship endured by Brussels
and Washington lately, and most importantly the fact that nothing concrete
has been agreed on.
On Wednesday, European Commission President Jean-Claude Juncker and Trump
hailed a “new phase” in relations during their meeting at the White House.
For his part, Trump shelved a threat to slap tariffs on European cars;
whilst in return, Juncker promised that the EU would buy more liquefied
natural gas and soybeans from America.
But away from the back-slapping and smiles, caution and skepticism remain,
as details of any firm agreement are glaringly short in supply.
“Of course you have to have the caveat that the devil will be in the
details,” European parliamentarian Richard Corbett told Xinhua. “It’s an
agreement to start a process and with Trump you can never be sure whether
that will be followed up properly.”
And given the Trump administration’s unpredictable track-record, there are
fears that any new talks could quickly unravel. Despite that, both Trump and
Juncker vowed to address the steel and aluminum tariffs which kicked off the
dispute earlier this year.
“It was started unilaterally by Trump without foundation really and using
the security argument on products that really have nothing to do with
security. Taking unilateral action like that is not the proper way of doing
things,” Corbett said, adding that Brussels and Washington had endured an
uncomfortable relationship lately.
“I can understand people feeling uncomfortable when they are with Trump,”
Corbett added.
Experts and commentators on both sides of the Atlantic urged caution after
the talks, as Juncker arrived in Washington without a specific trade offer,
nor was one agreed.
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“Some of the heat seems to have gone out of the situation for now, but
unfortunately with this president what he says one week, might be
contradicted by what he says the following week, so you can’t really take
anything for granted,” Chris Horseman, a journalist specializing in
agriculture and trade policy, told Xinhua.
“I don’t think anything concrete has been achieved, as of today the same
tariffs are in place throughout — it’s basically an agreement to talk, but
it’s fairly loosely formulated. It’s really just a promise to talk rather
than a commitment to ultimately do anything,” Horseman added.
Over the last few weeks, Trump has faced increased domestic criticism as
American agricultural goods such as soybeans, sugar and fruit become pricier
in foreign markets due to retaliatory tariffs — and thus less attractive to
consumers.
“The truism is that nobody wins from a trade war,” Horseman said.
“Certainly with the agricultural products, I think Trump has got himself
into some problems domestically, with the knock-on effect of Chinese
retaliatory tariffs on soybeans and some meat products, and this was starting
to rebound on him,” Horseman said.
“I think that is certainly why soybeans were specifically mentioned in the
context of his press conference with Juncker,” Horseman said.
Corbett said it is in the interests of all sides to avoid a spiral of
retaliation, which would harm exporters and threaten jobs.
“It is, at first sight, a welcome development because we were facing,
indeed the world is facing, the big risk of an escalating trade war with tit-
for-tat measures and countermeasures leading to a downward spiral,” Corbett
added.
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