Brussels Shifts Approach to Global Trade Amidst Rising Tariff Concerns
Brussels has reversed its initial resistance to collaborating with countries affected by Trump’s tariffs, such as Canada and Mexico, in a bid to enhance its international trade strategy, reports 24brussels.
Former WTO chief Pascal Lamy criticized the European Commission for its lack of actionable efforts to forge a united international front against Trump’s trade policies. “The main criticism that can be made against the Commission is that it did not seriously try to build an international anti-Trump coalition,” he stated.
In late June, during a leaders’ summit, European Commission President Ursula von der Leyen proposed the creation of a new coalition, a concept joined by the EU’s 27 member states and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) members, which includes the U.K., Canada, Japan, Mexico, and Australia.
This proposal received a favorable response from German Chancellor Friedrich Merz, leader of the bloc’s largest economy. “If the WTO is as dysfunctional as it has been for years and apparently remains so, then we, who continue to consider free trade important, must come up with something else,” he remarked.
Negotiations between EU and CPTPP representatives are anticipated to take place later this year, with a focus on consolidating efforts to uphold rules-based trade in response to Trump’s tariff strategy, as indicated by a senior finance official from New Zealand.
“The only way the EU can rebuild trust in the system is by coordinating with other members, beyond the U.S., to ensure WTO rules are respected,” asserted Molina, who currently operates his own law firm, Molina & Associates. “That will require leadership and teamwork — and the hope that Washington eventually realizes this trade war hurts American interests and consumers.”
