With Biden, Europe hopes for a peaceful trade relationship

With Biden, Europe hopes for a peaceful trade relationship

 

Barely elected Joe Biden, European exporter’s dream of a rapid lifting of US taxes on them! But experts warn: the new administration will unhesitatingly defend American trade interests and the Europeans will not be left out.

 

Currently, Joe "Biden does not support free trade" however, he is "persuaded of the need for accepted work within the framework of international institutions, according to the IFW institute.

 

"We hope that the United States will change course from a commercial point of view (...) by renouncing (...) the autarkist policy that has distinguished the Trump presidency," said Nicola Bertinelli, president of the consortium Italian Parmesan producers, who annually export over 10 million tonnes to the United States.

 

The main Italian agricultural union, Coldiretti, has called for the lifting of trade sanctions imposed by the Trump administration, which hit Grana Padano, Gorgonzola, salami, mortadella, crustaceans, seafood, citrus fruits, limoncello...

 

"I hope that the first subjects (of discussion between the future American administration and Europe) can be to reverse the customs duties" of 25% on French wines, reacted to AFP Jérôme Despey, public assistant of the French agricultural consolidation FNSEA.

 

"We hope that the new American administration (...) will reverse the increase in customs duties" of 25% on Spanish olive oil, a spokesperson for the Dcoop cooperative also told AFP. A heavyweight in this sector!

Biden greeted by ... taxes

 

Cutting edge with these appeasement calls, it is with the announcement of customs sanctions against the United States in the 16-year-old dispute between Airbus and Boeing over state aid that the European consolidation has accepted the US president-nominee on Monday.

 

The EU is only implementing a decision of the World Trade Organization, the conflict itself had started long before Donald Trump came to power, and Brussels has said it wants a "negotiated solution".

 

But the timing of the European retaliation is surprising, as the Democratic candidate's victory has been hailed as the start of a new era after four years of fiery protectionist rhetoric and escalation in tariffs.

 

If they do not all speak with one voice - between Germany, a follower of reconciliation, and France, a supporter of the hard way - European economic leaders, scalded, remain on their guard.

 

"There should be no illusions. Besides, The USA has not been a close associate of European states for numerous years now," declared the French Minister of the Economy, Bruno Le Maire, a few days before the election.

 

Manufacturing employment at the heart of concerns

 

"There has always been protectionism in the United States: steel, for example, has always been a subject of tension with Europe, like wood with Canada", recalls Ruben. Nizard, economist for the

 

"Absolutely Donald Trump, with his duty on Mexican, Chinese, Canadian, plus, European products, has had a very aggressive policy, but the idea of ​​protecting American companies is also present in Biden's program."

 

Manufacturing employment, "in constant decline for 40 years in the United States", remains at the heart of the concerns of Americans, according to this economist. A decline for which Donald Trump blamed China, and by which he justified the increase in customs duties on products entering the United States - today by more than 20% on average.

 

For Ruben Nizard, "we will not return, in the next two years, to the level they had at the beginning of 2018", i.e. between 7 and 8%.

 

"Joe Biden will continue the policy of + America first + of Donald Trump, but in a more adroit and less radical", agrees Marcel Fratzscher, president of the DIW Berlin institute.

 

Joe "Biden dose not abide to free commerce" however, he is "convinced of the urgency for typical work within the framework of international institutions. This will be an important difference", notes Gabriel Felbermayr, president of the IFW institute.

 

For Carsten Brzeski, economist for ING, with the arrival of the Democrat, Donald Trump's most explosive threat, namely to tax European and in particular German cars, "should disappear"! However, "It’s difficult to do so.