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Mr Juncker Goes to Washington - Agree on Tariffs U-turn

by Oui Thu Jul 26th, 2018 at 06:15:22 AM EST

Just like North Korea's Kim, agreement on intent ... nothing to show for it beyond a momentary truce in the war of words and initial slap of tariffs on steel- and aluminum products. "Illegal" retaliation by the EU suspended? China the big loser today.

Donald Trump and Jean-Claude Juncker agree on tariffs U-turn | DW |

US President Donald Trump and European Commission President Jean-Claude Junker met at the White House on Wednesday, where they announced that the US and the European Union would work to reduce trade tensions that have arisen over the past few months out of Trump's confrontational trade policy.

The meeting comes after weeks of acrimony between the US and EU -- which account for 50 percent of global trade -- as both sides slapped tariffs on one another.

More below the fold ...


Major points announced

In an unexpected press announcement in the Rose Garden, Trump and Juncker laid out the major goals that they had agreed upon in their meeting:

    • The US and the EU would work towards "zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods," Trump said.
    • The EU would buy significant amounts of liquid natural gas from the US to help diversify the bloc's energy sources, as well as increase its imports of US-grown soybeans.
    • Both sides will hold off from imposing any further tariffs and will reassess exisiting tariffs on US steel and aluminum as long as trade talks remain ongoing.
    • Both the US and the EU would work to reform the World Trade Organization (WTO), which Trump has criticized for unfairness toward the US.

Misplaced tweet:

Sen. Joni Ernst's high-wire act: IowaFirst!

As Tariffs Bite, China Cancels U.S. Soy Deals and Hunt Is on for New Export Markets

My previous post ...

BIG Welfare to US Farmers ... Illegal Retaliation

European Union, who makes the trade deals for export markets?

EU Council adopts new approach to negotiating and concluding trade agreements (22/05/2018)

Positive outcome, alleviates some pressure on the EU Council as PM May takes an aggressive approach in coming weeks on the Brexit negotiations:

Kabuki Theatre: Theresa May Takes Control DExEU

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My reading is that Juncker knew Trump's ego would require at least some sort of symbolic big win. So he fed in some stuff that was probably going to happen anyway.

Increased purchases of US Soybeans plays well with Trumps rural constituencies, but would have to happen anyway as China has cancelled US soybean purchases and will be hoovering up supplies elsewhere.

Increased purchases of US LNS is probably necessary until more Russian gas pipelines become operative and feeds into Trump's agenda to force Germany and the EU to be more dependent on the US rather than Russia.

The big win for Juncker is no further EU/US Tariff wars which had the potential to harm EU exports (and trade surplus) and destabilise the world economy. The psychology of appearing to be on the same side is important.

EU retaliatory tariffs have been cleverly targetted at Trumps Republican base and are causing him domestic grief from people who matter. "Reassessing" them is a win win. Everybody wants to "reform" the WTO and everybody knows it won't happen.

The main thing is that Trump's ego has been fed - for now. The practical details are relatively unimportant. Ask Kim.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Jul 26th, 2018 at 10:08:51 AM EST
Exactly! LOL

Global Warming - distance between America and Europe is steadily increasing.
by Oui on Thu Jul 26th, 2018 at 10:58:26 AM EST
[ Parent ]
I broadly agree? However there is always cause for vigilance. Brace for a lot of indefensible ideas getting Trump washed.
by generic on Thu Jul 26th, 2018 at 02:03:04 PM EST
[ Parent ]
He who would sup with the devil should use a long spoon!

Sooner or later the EU will find itself in a flat out conflict with Trump, and I'm not sure Juncker is the right man for that job.

But as an exercise in de-escalating a situation that could very quickly get out of control, he probably did a good job.

The downside is that Trump thinks he won, and that all he has to do is threaten more tariffs or something and the EU will come running with gifts.

The only longer term solution is to become less and less dependent on the US and that means building alliances with everyone else. The FTA with Japan is a good start.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Jul 26th, 2018 at 02:36:49 PM EST
[ Parent ]
contiguous region trading partners?

< wipes tears >

Diversity is the key to economic and political evolution.

by Cat on Thu Jul 26th, 2018 at 05:23:26 PM EST
[ Parent ]
import/export dumping

Brazil to pass U.S. as world's largest soy producer in 2018

Diversity is the key to economic and political evolution.

by Cat on Thu Jul 26th, 2018 at 05:30:51 PM EST
China's June soy imports jump ahead of tariffs on U.S. shipments
the spread

Diversity is the key to economic and political evolution.
by Cat on Thu Jul 26th, 2018 at 05:35:57 PM EST
Higher U.S. soy imports won't harm EU farmers: German minister
Europe had previously relied on soy imports from South America, but would now shift its demand to U.S. suppliers, she told the paper.


Diversity is the key to economic and political evolution.
by Cat on Sat Jul 28th, 2018 at 11:59:10 PM EST
10 Downing Street?

US, EU Trade Officials Split Over Agriculture in Trade Talks

"when you read the joint statement ... you will see no mention of agriculture as such, you will see a mention of farmers and a mention of soybeans, which are part of the discussions and we will follow up that." [EC spokeswoman Mina Andreeva] added, "We are not negotiating about agricultural products."
"aggressive in their agreements"

Diversity is the key to economic and political evolution.
by Cat on Tue Jul 31st, 2018 at 04:30:43 PM EST
On third-countries
How BRICS Plus clashes with the US economic war on Iran
Once again, BRICS Plus is all about constituting a "unified platform of regional integration arrangements," going way beyond regional deals to reach other developing nations in a transcontinental scope.

This means a platform integrating the African Union (AU), the Eurasian Economic Union (EAEU), the Shanghai Cooperation Organization (SCO) as well as the South Asian Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

a promise from the descendants of the Medes
General Soleimani to Trump: Stop threatening Iran with your 'cabaret-style rhetoric'
"You may begin the war, but it is us who will end it."
that I do not doubt.

The Europe's descendants are more likely to respond to highly prized, increasingly unreliable AMZN delivery with 24-hour boycotts and by killing their families than enlisting in the armed forces of the homeland. So sayeth the laws of the rational, self-interested actor.

Diversity is the key to economic and political evolution.

by Cat on Fri Aug 3rd, 2018 at 05:07:12 PM EST


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