Movement in the TRANS-Atlantic trade dispute? Gabriel Felbermayr, President of the Kiel Institute for the world economy to economy Minister Altmaiers proposal that industrial tariffs between the US and the EU to abolish.
In the trade conflict with the United States, the Europeans, according to a statement from the Federal Economics Minister, Peter Altmaier, to far-reaching concessions ready. They were ready “to reduce the customs duties on important industrial products to zero”, had Altmaier told the newspaper “world on Sunday”. This sounds at first glance quite great, but this is more than just a PR number?
Yes, it’s more than just a PR number.About a year ago, the EU had met with Commission President Juncker and President of the Trump in Washington, and this famous truce was negotiated. There, it had already welcomed: We strive to achieve an agreement, in which all industry will be reduced customs duties to Zero, except for the cars. Peter Altmaier is of the essence right now it is actually quite natural.
The current Administration in the United States is in your policy, sometimes a little erratically. It is actually useful to include a far-reaching agreement with Washington, or is not to be feared that every day could be a new Tweet, after this and that would have to change?
The US policy is in fact erratic. What was agreed a year ago, that’s not yet been implemented, because the Americans have taken distance from what was promised then. Among other things, the U.S. government insists that agricultural products should be included in the negotiations. But this is for Europe quite difficult. President Macron in France is strictly.
But at the same time, we want to be in Germany make sure that the duties will be written on cars in such an agreement, and since Donald Trump is open but all of the options. Because he wants to be able to continue to threaten them with these duties. Even if not, this threat here is a effect, and the result is that the German car maker to expand tend to be their production in the United States.
We have a bit of a stalemate on both sides of the Atlantic. In both Washington and in Brussels, it is not so hot on it, to these proposals of Mr. Altmayer really.
Professor Gabriel Felbermayr since March 2019 President of the Institute for the world economy (IfW) in Kiel.
The proposals of the Federal Minister for economic Affairs, look at first glance like a revival of the TTIP arrangements for a TRANS-Atlantic free trade zone. The was a controversy in Europe, and Donald Trump has rejected it from the outset. The Altmaier is to push something of a TTIP by the back door?
No. TTIP is dead. I don’t think you can revive TTIP again. There was a lot of Resistance. The TTIP has also been in the wrong in the pipeline: The content has been negotiated, which would have economically little effect, but high levels of resistance have caused. I think of the courts of arbitration – which we do not need to cross the Atlantic. But what was negotiated, it was cuts, already Inch. Since it has moved very far to each other. If you were to put these areas out of the TTIP negotiations is now back on the table, and there seriously would make, then, in any case, Europe would benefit from such an agreement. And the United States, under the condition that agricultural and food products are not involved in the negotiations.
Agricultural products and the arbitration courts were just in Europe, highly controversial. Since the Altmaier could start to go-thrust as a shot to the back, when all of a sudden in Europe – particularly in Germany – the debate now. How about the argument about the chlorine chicken…
Yes, Yes: the chlorinated chicken. This was a very symbolic theme. To TTIP-times charged heavily with the fear in Europe, especially in German-speaking member States, that a minimum of could quality American agricultural products to Europe. At the time I was already very exaggerated, It would be a shame if an agreement with the United States would now fail again on this unfortunate topic. It is clear that the TTIP were overloaded negotiations. There were also many other issues that we would not see today so much.
Now, it is important to preserve so that we can get a further escalation. If the Americans would impose duties on European cars, Europe would fight back and compared to the United States customs impose. This would cause both sides a lot of damage. Therefore, Peter Altmaier, is so active, in order to prevent the.
In your assessment, Altmaiers proposal has a Chance of being implemented, or All will be lost relatively quickly in the sand?
The Altmaier proposal has the Problem that it does not include the agricultural sector, and in American history, has never received a trade agreement with the blessing of Congress, which would have excluded the agricultural sector. If we don’t convince the French, agriculture to the package, then the is nothing. And then we have in Germany of course, the concern in front of the car, customs duties and other industrial tariffs, the us is particularly strong.
Gabriel Felbermayr, Professor of Economics at the Christian-Albrechts-University of Kiel, Germany, in March 2019 President of the Institute for the world economy (IfW) in Kiel.
The Interview was conducted by Dirk Kaufmann.