A global economic war has begun. Two fronts and zero winners
The European Union has declared an economic war against the United States. The fighting will begin on July 1. At the same time, Russia opened a “front” against “unfriendly foreign states”: President Putin signed the law on counter-sanctions. It seems that a global war is beginning on the planet, and we will have to forget about an open liberal economy. There comes an old era of protective duties, tariffs and quotas.
The theme of the coming “blockade” of the United States by the united European states occupies the front pages of the largest newspapers on both sides of the Atlantic. Fees for goods from the US The European Union will “turn on” 1 July 2018. The list has already been compiled.
In this situation, the EU is not attacking, but defending. Earlier, the US administration in the person of the Minister of Commerce Wilbur Ross reported that the White House sets customs duties for importing steel and aluminum products from the US on June 1. The barriers approved by 31 in May touched the states of the European Union, Mexico and even Canada. Sizes of duties: 25% for steel, 10% for aluminum.
Brussels attempted to respond to Washington in a peaceful manner. As is customary in democracies with an open liberal economy, the European Union appealed to the World Trade Organization and challenged Washington’s unilateral decision. In Brussels, made up a long list of categories of goods from the United States, which may fall under the retaliatory European duties.
An eye for an eye, a tooth for a tooth, a fracture for a fracture. Europe went a little further than the Old Testament institutions, offering response duties not to 25%, but even to 50%. Moreover, the European Commission said that they reserve the right to “asymmetric measures”. No, this does not mean the bombing of Washington and New York or the overthrow of Mr. Trump by euromaidan, organized with the help of Brussels-based NGOs and French buns. The European Commission believes that it is possible to respond to the United States "outside of metallurgical products." Europe is ready to hit on specific American products, which to this day remain popular in the Old World: for example, branded Levise jeans and motorcycles Harley Davidson. The list of goods brought to the attention of the WTO, and the one-sided action of the Trump team is called “tariff threat”. Terminology, as we see, is quite military.
June 6 European Commissioners conferred and approved the decision to impose additional duties on the list of goods from the United States, a copy of which went to the World Trade Organization. The decision was made “as part of the EU’s reaction to US tariffs on steel and aluminum products,” the European Commission said in a statement. This reaction of Europe meets the standards of international trade.
Maroš Šefčović, Vice-President of the European Commission and Commissioner for Energy, declared the US measures of 31 on May 25-based steel tariffs and the 10-aluminum aluminum tariff "unilateral and illegal." According to Shefchovic, Trump's illegal decision requires a response from the EU.
In the European Union, it is estimated that the response rates will affect US goods for a total of about 2,8 billion euros per year. The list of US goods covers almost the entire spectrum, writes Financial Times: From peanut butter to pleasure boats and motorcycles. According to representatives of Brussels, protective duties were adjusted in order to cause "equivalent economic damage to the United States."
Mr Shefchowicz noted that the European Commission intends to launch "retaliation measures" from July. Preliminary in the framework of the EU procedures, these plans will be considered by national governments. Only after this anti-American duties will be able to enter into force.
EU diplomats told reporters that a preliminary discussion among national government officials, held in Sofia, showed “widespread support for retaliation.”
Separately, it is noted that "this plan was strongly supported" by France and Germany.
The European Commission insists that the proposed US response complies with WTO standards. Brussels’s actions are aimed at protecting European industries and the legitimate interests of the EU. At the same time, European commissioners find it difficult even to suppose that the unpredictable Mr. Trump will take in response. For example, Jyrki Katainen from the European Commission speaks with caution, noting that "it is in the interests of both parties" (the US and the EU) to avoid "further escalation or expansion of a trade war." There are no winners in such a war, he said.
About prohibitive duties on American motorcycles "Harley-Davidson", jeans, bourbon, orange juice, etc. writes «The Guardian». The war may not be limited to goods on 2,8 billion euros. The complaint filed with the WTO contains one more point: if the barrage policy adopted by the Trump team continues three years later, the European Union plans to introduce additional tariffs for which US products worth 3,6 billion euros will fall.
By the way, the UK occupies an interesting position in this matter: in the future, it may be in the middle of a war in neutral status. According to some experts, the new US tariffs pass the UK. At least they will not touch her as soon as she leaves the EU.
However, this is only an opinion. Britain, France and Germany are still acting against the United States in full agreement. Earlier, we recall, the three states signed a joint letter to the United States demanding to free European companies from the sanctions imposed by the White House against Iran.
The European Union, we should note, has become so angry with Donald Trump that it is already making efforts to create a global “united front against the aggressive trade policy of the US President Donald Trump” (Donald Trump's aggressive trade policies). He writes about it Politico.eu.
European Trade Commissioner Cecilia Malmström explained that such a “united front” should be created in Mexico, Canada and Japan. "We are determined to do what is needed, and we also work with many other countries, because it is not only about the confrontation between the EU and the US," the European Commissioner quotes the publication. In order to create an anti-American “front”, the EU has already approached the governments of Mexico, Japan and Canada. Formed "circle of friends" who believe "in international rules." According to Malmström, Trump’s steel and aluminum tariffs are risky and he can “isolate the United States.” After all, "the rest of the world" considers the decision of the White House "illegal."
Europe and the United States, recalled Cecilia Malmstrom, at one time created international rules and organizations that regulate trade. And Europe would like to work on this field with the United States. However, if the United States began to violate the rules created earlier, the European Union has to "take action."
The genie of the trade war was released from the bottle just at the moment when Russia opened its "front" against "unfriendly foreign states": the other day, President Putin signed the law on counter-sanctions.
The situation is somewhat similar to the European one: Russia, like the EU, does not attack, but defends itself. In early April, the US Treasury Department introduced additional restrictive measures against companies, businessmen, government officials and state managers from the Russian Federation. Two months later, 4 June, the law on counter-sanctions, signed by V. Putin, appeared on the legal information portal, giving the head of state the right to ban international cooperation (or suspend such) with “unfriendly foreign states and organizations”. An early controversial rule was excluded from the draft law, which could bring Russian companies and banks with foreign participation under restrictions. Restrictions will not spread and for essential goods, including medicines.
Signing the law on counter sanctions commented in an interview with the channel "RT" expert of the International Institute for Humanitarian and Political Studies Vladimir Bruter. “In my opinion,” he said, “Russia does not yet plan to introduce any kind of counter-sanctions, it reserves such an opportunity. The further depends on what policies the collective West and the USA and the EU will pursue separately. As for the regions, this is a ban on the import of American goods; sanctions are possible on the use of Russian territory of the American aviation during transcontinental flights. I think that the situation itself suggests that Russia would not want to carry out a sanctions struggle in a more serious area, but if the pressure continues, Russia has created an instrument that will be used if it is forced to do so. ”
The expert is echoed by the deputy director of the analytical department of Alpari, Natalia Milchakova. “If you tighten the sanctions against Russia, you will receive an answer too,” she said. RIA News".
However, we note, in contrast to the tough decision of the EU, made right down to the Old Testament establishment, the reaction of Russia is rather demonstrative. This is easy to explain: the technologically weak Russian economy, dependent on trade in raw materials and dependent on the West in imports, is much more difficult to effectively respond to "partners." Still, some measures can be taken, and this, of course, will raise the temperature of international relations by a few more degrees.
On the planet begins a global economic war. Its “front” extends from Mexico to Japan, from Canada and the USA to the European Union. A kind of center of "front-line geography" is Russia, against which, as if hammering nails into the coffin lid, the United States is constantly introducing new sanctions.
Apparently, the planet will have to forget about the open world economy for a while. Ahead of protective duties, tariffs and quotas - the good old mercantilism with its protectionism, if we recall the terms of stories economic studies.
Who will win the coming war? The European Commission believes that there are no winners in trade wars. However, for a protracted war (longer than three years) in Brussels are ready. And this war against the United States is another reason for Europe to move closer to Russia. Maybe Mr. Trump, who has recently been ceased to be called an agent of the Kremlin, will still play a useful role for Moscow?
The theme of the coming “blockade” of the United States by the united European states occupies the front pages of the largest newspapers on both sides of the Atlantic. Fees for goods from the US The European Union will “turn on” 1 July 2018. The list has already been compiled.
In this situation, the EU is not attacking, but defending. Earlier, the US administration in the person of the Minister of Commerce Wilbur Ross reported that the White House sets customs duties for importing steel and aluminum products from the US on June 1. The barriers approved by 31 in May touched the states of the European Union, Mexico and even Canada. Sizes of duties: 25% for steel, 10% for aluminum.
Brussels attempted to respond to Washington in a peaceful manner. As is customary in democracies with an open liberal economy, the European Union appealed to the World Trade Organization and challenged Washington’s unilateral decision. In Brussels, made up a long list of categories of goods from the United States, which may fall under the retaliatory European duties.
An eye for an eye, a tooth for a tooth, a fracture for a fracture. Europe went a little further than the Old Testament institutions, offering response duties not to 25%, but even to 50%. Moreover, the European Commission said that they reserve the right to “asymmetric measures”. No, this does not mean the bombing of Washington and New York or the overthrow of Mr. Trump by euromaidan, organized with the help of Brussels-based NGOs and French buns. The European Commission believes that it is possible to respond to the United States "outside of metallurgical products." Europe is ready to hit on specific American products, which to this day remain popular in the Old World: for example, branded Levise jeans and motorcycles Harley Davidson. The list of goods brought to the attention of the WTO, and the one-sided action of the Trump team is called “tariff threat”. Terminology, as we see, is quite military.
June 6 European Commissioners conferred and approved the decision to impose additional duties on the list of goods from the United States, a copy of which went to the World Trade Organization. The decision was made “as part of the EU’s reaction to US tariffs on steel and aluminum products,” the European Commission said in a statement. This reaction of Europe meets the standards of international trade.
Maroš Šefčović, Vice-President of the European Commission and Commissioner for Energy, declared the US measures of 31 on May 25-based steel tariffs and the 10-aluminum aluminum tariff "unilateral and illegal." According to Shefchovic, Trump's illegal decision requires a response from the EU.
In the European Union, it is estimated that the response rates will affect US goods for a total of about 2,8 billion euros per year. The list of US goods covers almost the entire spectrum, writes Financial Times: From peanut butter to pleasure boats and motorcycles. According to representatives of Brussels, protective duties were adjusted in order to cause "equivalent economic damage to the United States."
Mr Shefchowicz noted that the European Commission intends to launch "retaliation measures" from July. Preliminary in the framework of the EU procedures, these plans will be considered by national governments. Only after this anti-American duties will be able to enter into force.
EU diplomats told reporters that a preliminary discussion among national government officials, held in Sofia, showed “widespread support for retaliation.”
Separately, it is noted that "this plan was strongly supported" by France and Germany.
The European Commission insists that the proposed US response complies with WTO standards. Brussels’s actions are aimed at protecting European industries and the legitimate interests of the EU. At the same time, European commissioners find it difficult even to suppose that the unpredictable Mr. Trump will take in response. For example, Jyrki Katainen from the European Commission speaks with caution, noting that "it is in the interests of both parties" (the US and the EU) to avoid "further escalation or expansion of a trade war." There are no winners in such a war, he said.
About prohibitive duties on American motorcycles "Harley-Davidson", jeans, bourbon, orange juice, etc. writes «The Guardian». The war may not be limited to goods on 2,8 billion euros. The complaint filed with the WTO contains one more point: if the barrage policy adopted by the Trump team continues three years later, the European Union plans to introduce additional tariffs for which US products worth 3,6 billion euros will fall.
By the way, the UK occupies an interesting position in this matter: in the future, it may be in the middle of a war in neutral status. According to some experts, the new US tariffs pass the UK. At least they will not touch her as soon as she leaves the EU.
However, this is only an opinion. Britain, France and Germany are still acting against the United States in full agreement. Earlier, we recall, the three states signed a joint letter to the United States demanding to free European companies from the sanctions imposed by the White House against Iran.
The European Union, we should note, has become so angry with Donald Trump that it is already making efforts to create a global “united front against the aggressive trade policy of the US President Donald Trump” (Donald Trump's aggressive trade policies). He writes about it Politico.eu.
European Trade Commissioner Cecilia Malmström explained that such a “united front” should be created in Mexico, Canada and Japan. "We are determined to do what is needed, and we also work with many other countries, because it is not only about the confrontation between the EU and the US," the European Commissioner quotes the publication. In order to create an anti-American “front”, the EU has already approached the governments of Mexico, Japan and Canada. Formed "circle of friends" who believe "in international rules." According to Malmström, Trump’s steel and aluminum tariffs are risky and he can “isolate the United States.” After all, "the rest of the world" considers the decision of the White House "illegal."
Europe and the United States, recalled Cecilia Malmstrom, at one time created international rules and organizations that regulate trade. And Europe would like to work on this field with the United States. However, if the United States began to violate the rules created earlier, the European Union has to "take action."
The genie of the trade war was released from the bottle just at the moment when Russia opened its "front" against "unfriendly foreign states": the other day, President Putin signed the law on counter-sanctions.
The situation is somewhat similar to the European one: Russia, like the EU, does not attack, but defends itself. In early April, the US Treasury Department introduced additional restrictive measures against companies, businessmen, government officials and state managers from the Russian Federation. Two months later, 4 June, the law on counter-sanctions, signed by V. Putin, appeared on the legal information portal, giving the head of state the right to ban international cooperation (or suspend such) with “unfriendly foreign states and organizations”. An early controversial rule was excluded from the draft law, which could bring Russian companies and banks with foreign participation under restrictions. Restrictions will not spread and for essential goods, including medicines.
Signing the law on counter sanctions commented in an interview with the channel "RT" expert of the International Institute for Humanitarian and Political Studies Vladimir Bruter. “In my opinion,” he said, “Russia does not yet plan to introduce any kind of counter-sanctions, it reserves such an opportunity. The further depends on what policies the collective West and the USA and the EU will pursue separately. As for the regions, this is a ban on the import of American goods; sanctions are possible on the use of Russian territory of the American aviation during transcontinental flights. I think that the situation itself suggests that Russia would not want to carry out a sanctions struggle in a more serious area, but if the pressure continues, Russia has created an instrument that will be used if it is forced to do so. ”
The expert is echoed by the deputy director of the analytical department of Alpari, Natalia Milchakova. “If you tighten the sanctions against Russia, you will receive an answer too,” she said. RIA News".
However, we note, in contrast to the tough decision of the EU, made right down to the Old Testament establishment, the reaction of Russia is rather demonstrative. This is easy to explain: the technologically weak Russian economy, dependent on trade in raw materials and dependent on the West in imports, is much more difficult to effectively respond to "partners." Still, some measures can be taken, and this, of course, will raise the temperature of international relations by a few more degrees.
* * *
On the planet begins a global economic war. Its “front” extends from Mexico to Japan, from Canada and the USA to the European Union. A kind of center of "front-line geography" is Russia, against which, as if hammering nails into the coffin lid, the United States is constantly introducing new sanctions.
Apparently, the planet will have to forget about the open world economy for a while. Ahead of protective duties, tariffs and quotas - the good old mercantilism with its protectionism, if we recall the terms of stories economic studies.
Who will win the coming war? The European Commission believes that there are no winners in trade wars. However, for a protracted war (longer than three years) in Brussels are ready. And this war against the United States is another reason for Europe to move closer to Russia. Maybe Mr. Trump, who has recently been ceased to be called an agent of the Kremlin, will still play a useful role for Moscow?
Information