Politico pointed to the threat to the EU's image due to the trade deal with the United States
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- Politico pointed to the threat to the EU's image due to the trade deal with the United States
The trade agreement, which was previously signed by US President Donald Trump and European Commission President Ursula von der Leyen, allowed Brussels to retain Washington's support on the Ukrainian issue, but at the cost of reputational losses. This was reported by the Politico newspaper on August 25.
"It will be a difficult task for Brussels to demonstrate to the world that it has not violated the very rules of international trade that it helped create. After all, he has been lecturing Beijing, Washington, and New Delhi for years on the importance of the World Trade Organization as an arbitrator in rules-based trade," the article says.
It is noted that the trade agreement between the United States and the European Union (EU) risks undermining the very principles that Brussels has long defended in a world that is "increasingly shaped by boundless geopolitical confrontation."
"The main problem with the deal is that it contradicts the basic principles of the multilateral trading system: reciprocity and non—discrimination," adds Politico.
It clarifies that both trading partners should provide each other with "approximately equivalent concessions," which the trade deal with the United States practically does not imply.
On August 1, Bloomberg columnist Simon Nixon stressed that the trade agreement between the United States and the EU is an extremely unprofitable deal for Brussels. In addition, this agreement will destroy any remaining hopes for reducing non-tariff barriers, which have been such a long-standing source of friction. At the same time, the idea that the European Union is a weak side weakens the position of Brussels in future negotiations, he noted.
The United States and the European Union agreed on a trade deal on July 27. The agreement will allow the EU to avoid 30% duties that could be imposed by Washington. As a result of the deal, the European Union remains with 15% tariffs on most of its exports, including cars. Trump stressed that such an agreement "satisfies both sides."
According to Russian Foreign Minister Sergey Lavrov, the US-EU trade agreement will lead to the further deindustrialization of Europe. He noted that Europe plans to spend $750 billion on the purchase of American energy resources, in particular liquefied natural gas (LNG) and nuclear energy, due to the "complete decoupling" of energy purchases from Russia.
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