EU President Defends Trade Deal
The EU wasn't willing to gamble on a trade war, European Commission President Ursula von der Leyen said in her annual "State of the EU" speech.
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"I have heard many things about the deal we agreed on over the summer," she said, diplomatically referring to critics who say it's a lopsided deal where the EU liberalizes its market while the U.S. imposes 15% tariffs on most European exports.
She noted that EU exporters sell more than a half a trillion euros' worth of goods annually to U.S. importers. "Millions of jobs depend on it. As President of the Commission, I will never gamble with people's jobs or livelihoods. This is why we did a deal to keep market access for our industries," she said, according to prepared remarks.
She said some direct competitors may have a lower baseline, but the EU secured exceptions that mean the EU has the best agreement.
She said she doesn't believe in tariffs, "but the deal provides crucial stability in our relations with the US at a time of grave global insecurity."
She said it also spurs Europe to ink more trade deals around the world, pointing to Mercosur, Mexico and India. "We will also build a coalition of like-minded countries to reform the global trading system," she said, pointing to the members of the Trans-Pacific Partnership as an example. "Because trade allows us to strengthen our supply chains. Open up markets. Reduce dependencies."
However, the president laid down a red line on digital regulation, an issue that President Donald Trump says warrants a Section 301 investigation, which could authorize higher tariffs.
"I want to be crystal clear on one point: Whether on environmental or digital regulation, we set our own standards," von der Leyen said. "We set our own regulations. Europe will always decide for itself."