Lagarde calls for a dialogue in the trade dispute

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Central and Eastern European States have achieved in the past, economically much. Setbacks now threaten, in the face of increasing protectionism and trade conflicts, for instance in the car industry.

Most of you may not think of when the talk is of a Autoland, in Europe, primarily in Slovakia or the Czech Republic. You should, however, in the meantime. Because, according to calculations by the International monetary Fund (IMF) is measured, Slovakia, the in the auto industry working people, the second largest car producer in the European Union. In the past two decades, the States have quadrupled share from the so-called CESEE Region (Central, Eastern and Southeastern European Economies), so from East and Central Europe, their share of world exports of cars and car – from 2.5 to 10 percent.

That’s why the US threatened criminal would have the effect of tariffs on these countries. Analyses of the IMF have shown, for example, that the Czech Republic would be in fourth place of the countries of Europe, which would make the car duties at the most. In the course of the trade conflict, US President, Donald Trump, 25, had threatened-Percent punitive tariffs on European cars and car parts, because they were, in his view, a threat to national security.

Workplace for 14,000 people: The VW factory in Bratislava

Danger for the functioning of chains

Although the CESEE countries is unlikely to export directly to cars or car parts in the USA. However, they are now major suppliers for car manufacturers in other European countries. In short: As the value chains go beyond almost all of the countries that would be excluded is hardly a country of punitive tariffs for the European car industry. “If one link in the value chain breaks down, will feel the whole network effect,” warned IMF Chief Christine Lagarde at an event on Wednesday in Frankfurt on the Main of the consequences should escalate the Trade disputes between the US, China and Europe.

A half of a percent of the Trade disputes and criminal duties of the annual global economic output lower, had said the IMF Chief recently. That’s why Lagarde has called on now in Frankfurt again and insistently to the dialogue. “We must make every effort to defuse the current trade conflict and the constructive dialogue to continue. And if we can’t, we should motivate at least others to do this.”

The call for dialogue is aimed, not least, of course, to the address of the White house in Washington. President Donald Trump has repeatedly to the start of the week for his threats against China, and tightened. The Difficult part of the Situation: China and the USA lie with their claims and points of view diverge quite far.

“All have to move”

Between Europe and the United States, the trenches are superficially not so deep. However, the “constructive dialogue” to get in the coming months, the electric car tariffs from the table, it will also be difficult. Because the Americans want to talk in turn about over agricultural tariffs and subsidies. But the the European countries, above all France, to reject, to be decided. “The Americans want to break the deadlock in the negotiation situation. And since the car duties are the best,” says the chief economist of Commerzbank, Jörg Krämer. “Because the Americans know that the car is production for the Euro area and the European Union is very important.”

In order to prevent further damage, have to move, so apparently all of the pages and find compromises. Probably that’s why Christine Lagarde finally turned, indirectly, to the address in China. “Need to look at the distorting influence of state subsidies and to strengthen intellectual property rights and to guarantee free competition.” Because the Settle the trade conflict presupposes that one agrees rules on all sides on the common system of trade. Otherwise, so Lagarde, should the conflict soon intensified a negative impact on the economies In the CESEE countries as well as in other countries of Europe and the world.