France Labels EU-US Trade Agreement a ‘Submission’ Amid Relief Over Avoided Trade War

Summary – France criticizes the newly reached EU-US trade agreement as a concession, while Europe broadly welcomes the resolution that prevents a trade war.,

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The recent EU-US trade agreement reached on April 25, 2024, has sparked a range of reactions across Europe, notably with France voicing strong criticism by labeling the deal a “submission” due to perceived concessions. Meanwhile, many European leaders express relief that a trade war has been averted. Below is an overview of the key points surrounding the agreement.

Key Details of the Agreement

• Removal of tariffs on steel and aluminum.
• End of retaliatory duties on products such as whiskey and tractors.
• Creation of mechanisms for dispute resolution related to industrial subsidies, particularly in the aviation sector.
• Enhanced regulatory alignment between the EU and the US.
• Frameworks established to manage future disagreements and prevent escalation.

Stakeholders Involved

The principal parties include the European Union, represented by the European Commission and its Trade Commissioner, and the United States government, led by the U.S. Trade Representative. Key EU member states involved in negotiations were:

1. France
2. Germany
3. Italy

Important figures include French President Emmanuel Macron and European Commission President Ursula von der Leyen.

European Reactions

• France: Condemned the agreement as “submission to U.S. pressure,” expressing concerns about European autonomy and industrial competitiveness.
• French Trade Minister Franck Riester: Pledged continued advocacy for stronger protective measures within the EU framework.
• Germany and the Netherlands: Displayed cautious optimism, highlighting the importance of stable trade relations with the US.
• European Parliament: Welcomed the deal’s potential to stabilize transatlantic economic ties and called for strict enforcement of terms.
• World Trade Organization (WTO): Acknowledged the deal’s positive impact in minimizing the risk of a global trade conflict.

Immediate Economic and Political Consequences

Economic Impact: Suspension of planned tariff hikes reduced uncertainty and benefited industries such as automotive, agriculture, and technology.

Political Impact: The deal strengthened the EU’s standing as a unified trading bloc but also highlighted internal divisions, especially France’s opposition. It may influence future trade negotiations addressing digital trade, climate-related measures, and investment protections.

Next Steps

• European Commission will closely monitor the implementation and report to the EU Council and Parliament.
• A joint EU-US committee will be established to oversee dispute resolution and maintain ongoing trade dialogue, with the first meeting planned within two months.
• Further cooperation is planned on emerging technologies and climate-related trade standards.

In summary, while reactions vary, the agreement is a crucial step toward avoiding a damaging trade war and fostering deeper economic collaboration between the EU and the US in addressing global challenges.

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