“Strategic Autonomy” Divides Europe’s Top Liberals

Angela Merkel Ursula von der Leyen Emmanuel Macron Mark Rutte
German chancellor Angela Merkel, European Commission president Ursula von der Leyen and French president Emmanuel Macron watch Dutch prime minister Mark Rutte walk into a European Council meeting in Brussels, July 18 (European Council)

Emmanuel Macron and Mark Rutte belong to the same European liberal family, but they take different views on the future of the liberal world order.

The French president believes Europe should become less reliant on the United States and foreign trade. He argues for “strategic autonomy” in everything from the digital economy to defense to environmental policy.

The Dutch prime minister has doubts, rooted in decades of Dutch Atlanticism and centuries of overseas trade.

Both have allies.

Macron has the support of German chancellor Angela Merkel and European Commission president Ursula von der Leyen, a former German defense minister.

Rutte is backed by smaller countries in Central and Northern Europe as well others in the European Commission. The Financial Times reports that plenty suspect “strategic autonomy” is a fancy way to dress up French protectionism; are wary of formally endorsing the principle if it means undermining NATO and open trade; and are skeptical of the push for reshoring of industry and supply chains.

They have reason to be. Read more ““Strategic Autonomy” Divides Europe’s Top Liberals”

Cyprus Votes Against EU Trade Deal with Canada

Nicos Anastasiades Mette Frederiksen
President Nicos Anastasiades of Cyprus speaks with Prime Minister Mette Frederiksen of Denmark during a meeting of the European Council in Brussels, February 20 (European Council)

First tiny Wallonia threatened to derail the EU’s free-trade agreement with Canada. Now Cyprus, with a population of 1.2 million, is putting at risk a treaty that covers nearly 500 million consumers and 28 percent of the world’s economy.

Cypriot lawmakers voted 37 to eighteen against the Comprehensive Economic and Trade Agreement (CETA), which eliminates nearly all tariffs between Canada and the EU and includes mutual recognition of professional qualifications and product standards.

It’s one of those product standards the Cypriots are unhappy about. They argue CETA should close the Canadian market to foreign ripoffs of their national cheese, halloumi. Read more “Cyprus Votes Against EU Trade Deal with Canada”

Why Kosovo Is Lifting, But Will Likely Reinstate, Tariffs on Serbia

Edi Rama Albin Kurti
Prime Minister Edi Rama of Albania receives his Kosovar counterpart, Albin Kurti, in Tirana, February 11 (Kancelarija Premijera)

Kosovo’s new prime minister, Albin Kurti, is partially lifting his predecessor’s 100 percent import tariff on Serbian goods. He has offered to lift the tariff completely if Serbia suspends its derecognition campaign. If it fails to reciprocate, the tariffs will be restored in June.

Since reciprocation would imply Serbian recognition of Kosovo’s independence, it seems inevitable the trade sanctions will be back soon. Read more “Why Kosovo Is Lifting, But Will Likely Reinstate, Tariffs on Serbia”

Dutch Senate Could Torpedo EU-Canada Trade Deal

Mark Rutte
Dutch prime minister Mark Rutte makes a speech in the European Parliament in Strasbourg, June 13, 2018 (European Parliament/Genevieve Engel)

Dutch parliamentarians narrowly approved an EU trade agreement with Canada on Tuesday, but ratification of the treaty faces an uphill battle in the Senate, where Prime Minister Mark Rutte’s ruling parties do not have a majority.

If the pact isn’t supported by the Netherlands — one of the EU’s most liberal and free-trading nations — it would call the bloc’s ambition to uphold the global trade regime in lieu of American leadership into doubt.

Since Donald Trump was elected in 2016, the EU has completed free-trade agreements with Japan and South America. The first went into effect in 2019, the second has yet to be ratified. Read more “Dutch Senate Could Torpedo EU-Canada Trade Deal”

Germany Can’t Blame Trump for Its Slowing Economy

Berlin Germany
A bird sits on top of one of the spires of the German Reichstag building in Berlin, December 31, 2005 (Max Braun)

Germany may be heading into a recession. Its economy shrank .1 percent in the second quarter of this year.

Donald Trump’s trade war with China is partly to blame, but it has also exposed Germany’s home-grown vulnerabilities: an overreliance on exports and weak domestic demand. Read more “Germany Can’t Blame Trump for Its Slowing Economy”

Arguments For and Against Macron’s Mercosur Threat

French president Emmanuel Macron answers a question from a reporter in Helsinki, Finland, August 30, 2018
French president Emmanuel Macron answers a question from a reporter in Helsinki, Finland, August 30, 2018 (Office of the President of the Republic of Finland/Juhani Kandell)

French president Emmanuel Macron has threatened to hold up ratification of an EU trade deal with Mercosur unless Brazil’s Jair Bolsonaro does more to fight fires in the Amazon Rainforest.

Canada, Finland, Ireland and the Netherlands have backed Macron up. Germany is less sure. Donald Trump is expected to side with Bolsonaro at the G7 summit this weekend.

Here are the arguments for and against the threat. Read more “Arguments For and Against Macron’s Mercosur Threat”

Small EU Countries Resist Franco-German Push for Protectionism

French president Emmanuel Macron speaks with Dutch prime minister Mark Rutte during a European Council meeting in Brussels, June 24, 2018
French president Emmanuel Macron speaks with Dutch prime minister Mark Rutte during a European Council meeting in Brussels, June 24, 2018 (Elysée)

Since the European Commission blocked a landmark merger of the French and German train manufacturers Alstom and Siemens, France and Germany have come out in favor of a “genuine European industrial policy” to compete with China and the United States.

Smaller countries, led by the Netherlands and Poland, are wary. Read more “Small EU Countries Resist Franco-German Push for Protectionism”

Modest Gains for Trump in NAFTA Renegotiation

Angela Merkel Donald Trump Justin Trudeau
German chancellor Angela Merkel, American president Donald Trump, Canadian prime minister Justin Trudeau and other G7 leaders meet in Charlevoix, June 8 (Flickr/Justin Trudeau)

On the heels of an arbitrary — and, it turns out, unnecessary — deadline, Canada, Mexico and the United States have finalized a renegotiation the North American Free Trade Agreement (NAFTA). The new deal is called the United States-Mexico-Canada Agreement (USMCA):

What’s in it? Read more “Modest Gains for Trump in NAFTA Renegotiation”

Italy Joins Trump in Resisting Canadian Trade

Prime Ministers Giuseppe Conte of Italy and Justin Trudeau of Canada meet at the G7 summit in Charlevoix, June 8
Prime Ministers Giuseppe Conte of Italy and Justin Trudeau of Canada meet at the G7 summit in Charlevoix, June 8 (Flickr/Justin Trudeau)

Italy has learned from Donald Trump that Canada is now the enemy of the West.

In an interview with the newspaper La Stampa, the country’s new agriculture minister, Gian Marco Centinaio of the far-right League, said he would ask parliament not to ratify the trade agreement the EU negotiated with Canada in 2016.

Without ratification by all 28 member states, the treaty cannot go into effect for the entire European Union. Read more “Italy Joins Trump in Resisting Canadian Trade”

EU Defies Trump on Iran Deal and Trade

French president Emmanuel Macron, Greek prime minister Alexis Tsipras and German chancellor Angela Merkel speak at a NATO summit in Brussels, May 25, 2017
French president Emmanuel Macron, Greek prime minister Alexis Tsipras and German chancellor Angela Merkel speak at a NATO summit in Brussels, May 25, 2017 (NATO)

EU leaders have closed ranks against the unilateralism of American president Donald Trump, announcing on the eve of a summit in Bulgaria that:

  • They will stay in the Iran nuclear deal so long as Iran abides by its terms. That means European companies will — for now — be able to continue doing business with Iran.
  • They are willing to start trade negotiations provided the United States exempt the EU from aluminum and steel tariffs.

Both decisions set Europe on a collision course with its ally. Read more “EU Defies Trump on Iran Deal and Trade”