Thu, Feb 09, 2023 @ 12:35 GMT
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Germany rumored to be willing to offer concessions to US on trade, European Commission rules that out

Bloomberg reported the European Commission urged the region’s governments today to stand united in trade talks with the US, and be ready to “think out of the box fast”. EU is seeking to follow South Korea to get indefinite exemption on the steel and aluminum tariffs by May 1.

But, the option of re-negotiation of EU-US free trade agreement is ruled out by EC. Unilateral European concessions to the US is also ruled out. It seems that EC is asking the officials to stay “inside” the box but think “out of” it. Well, there is no logical contradiction.

It was also reported by Bloomberg that Germany is adopting a flexible approach in dealing with the US and is willing to offer concession to the US. Germany Chancellor Angel Merkel is believed to be ready to lower the 10% EU tariff on autos to avoid a trade dispute.

But that is in total opposite position to France. President Emmanuel Macron is clear in his message that European steel and aluminum exports pose no security threat to the US. And the rules of international trade need to be “reinforced” to ensure such a level playing field.

So, the EC’s message seemed to be directed at Germany.

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