France and Germany lead downbeat EU response to US trade deal
The European Union's response to the recently announced US trade deal has been largely downbeat, with France and Germany at the forefront of criticism.
The 25-year agreement, which connects nearly 30 industries across both sides of the Atlantic, was greeted with a mix of excitement and skepticism by the Americans. However, the Europeans perceive it as a blow to their economic interests and are concerned it might undermine the fragile global recovery.
What's in it for the US?
The deal has the potential to boost US exports and stimulate its economy. It may also strengthen its influence in global trade rules, putting it at odds with China's growing influence. Although the fine print of the agreement has not yet been made public, many fear it will hurt EU exporters and accelerate the shift towards a US-centric world economy.
A Symptom of US-EU Rift?
The deal underscores the growing rift between the US and its European allies. For the first time, the EU's biggest trade leap is with a country that refuses to pay heed to Brussels' complaints about its unfair trade practices, labor standards, and environmental rules.
As the largest and wealthiest consumer market in the world, the EU tends to expect favorable treatment, with its strong farming lobbies insisting on special protections.
A Test for Global Trade Rules
The deal could become a test case for global trade rules and could set a precedent for other large economies. If it goes ahead, it may encourage other countries to strike similar deals, leading to the creation of various trade blocs that could undermine the World Trade Organization (WTO)
Curbing China's Economic Rise?
The agreement also comes at a time when the US is increasingly at odds with China over trade and other issues. Many believe this is a move by the US to counter China's growing influence and establish itself as the dominant economic power.
Conclusion
The EU's response to the US trade deal underscores the growing rift between the two sides and could be a sign of things to come. It remains to be seen how this deal, if approved, will impact the delicate balance of global trade and influence.
