POSITION | EXTERNAL ECONOMIC POLICY
A New Agenda for Transatlantic Trade Relations
July 2018 Core Recommendations 1. The European Union (EU) and United States must maintain a dialogue: This includes a common understanding of the factual basis of their trade relations and the restoration of mutual trust. 2. No tariffs under the guise of national security: Imports of steel, aluminium, automobiles, or automobile components do not constitute a threat to the national security of the United States. Consequently, those tariffs already imposed should be abolished and no further tariffs should be levied. 3. Act in accordance with the WTO: The EU’s rebalancing tariffs are an important political signal yet not without risks. Every EU decision on countermeasures must be made in accordance with the WTO rules book. We welcome the fact that the EU has filed a complaint at the World Trade Organisation (WTO). 4. Remove barriers to transatlantic trade: Numerous tariff and non-tariff trade barriers are continuing to constrain EUU.S. trade. Removing them would safeguard jobs, create prosperity, and should remain a long-term goal for the transatlantic partnership. 5. Secure a common ground for negotiations: The EU and the United States should examine whether there is a common basis for negotiations on a trade agreement. This includes a joint understanding on the content of negotiations and sociatal readiness for an agreement. Neither the EU nor the United States can afford failure. Negotiations must therefore be thoroughly prepared both politically and in terms of communication. 6. Any accord must meet the requirements of a modern trade agreement:
Abolition of all tariffs on industrial goods: In accordance with the rules of the WTO, an agreement should liberalize “substantially all the trade�. German industry champions the removal of all tariffs on industrial goods.1 Design of a modern trade agreement: In the current political environment, a resumption of the comprehensive TTIP agenda is unlikely. Nevertheless, any new agreement should meet the requirements of a modern trading partnership. Tariffs alone say little about actual market access. A mere tariff agreement with the United States would therefore not suffice. Non-tariff barriers to trade (NTBs) should be an integral part of talks and public procurement should be considered.
7. A positive agenda for the WTO: The WTO is the indispensable guardian of world trade, playing a major role in ensuring that trade relations are rules-based. However, its monitoring mechanisms and its set of rules are increasingly coming up against their limits. The EU and the United States should agree on a positive WTO agenda in order to modernise its rules and to strengthen its mechanisms for monitoring and enforcement. 8. A new agenda for dealing with China: China is a heavyweight in the global economy but does not always play according to the rules. The United States, the EU, and Japan should take joint action against market distortions, for example through the trilateral forum United States, EU, Japan. The objectives should be, among others, fair competition, restrictions on subsidies, the protection of intellectual property, and transparency in public procurement.
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Exceptions should be made for some particularly sensitive agricultural products.
Dr. Stormy-Annika Mildner, Julia Howald, Klara Schwobe | External Economic Policy | www.bdi.eu