Europe Looks for Ally to Check China as Trump and Covid Recede

Article content

(Bloomberg) — With Donald Trump in the rear-view mirror and the continent turning the corner in its Covid vaccination campaign, the European Union is looking past its slate of crises and charting its path in a world profoundly changed by the pandemic. And it’s looking to rekindle an old friendship.

In an overture to President Joe Biden, the EU this week sent the White House a proposed joint statement to smooth over recent conflicts and give a boost to the trans-Atlantic alliance to confront China and Russia.

The blueprint lays out how the two sides can move past trade disputes from the Trump era that have left more than $18 billion in exports subject to tariffs, according to a draft statement prepared for an EU-U.S. summit in Brussels on June 15. The draft argues that shared values and interests will help both sides meet “unprecedented global challenges.”

See also  Trump Organization braced for criminal charges from Manhattan prosecutor

“We will closely consult and cooperate on the full range of shared challenges and opportunities in the framework of our respective similar multi-faceted approaches to China,” according to the document obtained by Bloomberg. “We stand united in our principled approach towards Russia and we will respond decisively to its repeating pattern of negative behavior and malign activities.”

See also  Trump Organization braced for criminal charges from Manhattan prosecutor


This advertisement has not loaded yet, but your article continues below.

Article content

The summit will mark Biden’s first trip to Europe as president. The two sides are expected to pledge closer cooperation in fields touching all corners of their economies and take a stand against Russia’s crackdown on civil society, the opposition and independent media — a day before Biden and Russian President Vladimir Putin meet in Geneva.

America First

Trump’s “America First” approach pitted the allies against one another, with critics saying the trans-Atlantic dispute gave China leverage in dealing with divided, and thereby weakened, adversaries. When the EU and U.S. announced in March that they would temporarily suspend tariffs related to a dispute over illegal aid provided to aircraft makers, they cited the need to focus on unfair competition from the east.

The EU and U.S. said at the time they’d need to address “the trade distortive practices of and challenges posed by new entrants to the sector from non-market economies, such as China.” Both used similar language in a renewed effort to resolve a dispute over steel and aluminum.

After four years of tension, the EU and and the U.S will vow to work together on contentious areas from tax and trade to climate and foreign policy. That would broaden a rapprochement that began shortly after Biden’s inauguration with truces in trade disputes and a re-engagement on climate change.

At the same time, EU-Chinese tension escalated in March when China retaliated against Western sanctions over human rights in the Xinjiang region by announcing measures against 10 individuals and four entities from Europe.

See also  Fare Bargains Vanish as Airlines Seize on Surging Summer Demand


This advertisement has not loaded yet, but your article continues below.

Article content

EU lawmakers backed a resolution this month to withhold ratification of an EU investment agreement with China as long as the “baseless and arbitrary” penalties are in place.

See also  Facebook bans Donald Trump for at least two years

The EU-U.S. draft, which is subject to change, pledges both sides to “join forces to prevent and peacefully resolve conflicts, uphold the rule of law and international law, and promote human rights for all.”

Officials are working on the wording, according to two people familiar with the matter. A spokeswoman for the White House’s National Security Council declined to comment.

Climate Coordination

There’s also a push to reach a consensus on global tax issues, just as the world’s biggest economies have been debating where to tax firms in the digital era and how to apply a minimum tax rate on multinationals. Group of Seven finance minsters will discuss the issue next week, and European governments are increasingly optimistic of a breakthrough.

The EU and U.S. are also set to pledge closer cooperation to promote cuts in greenhouse-gas emissions, including a faster green transition in the poorest countries and a commitment to reach the goal of $100 billion per year in climate finance.

Discouraging investment in fossil fuels, including coal, and calling for a phase out of unabated coal in energy production is also part of the draft statement, as is a vow to work together on carbon pricing.

Biden embraced the idea of carbon adjustment fees or quotas during his presidential campaign. The Office of the U.S. Trade Representative says “carbon border adjustments” are among several approaches being considered to address greenhouse gas emissions.

See also  Facebook bans Donald Trump for at least two years

The summit will allow Europe and the U.S. “to reaffirm our strong commitment to the international rules based order including by reinforcing multilateral institutions and to strengthen foreign and security policy cooperation for a more democratic, just, peaceful and secure world,” according to the draft.

©2021 Bloomberg L.P.


This advertisement has not loaded yet, but your article continues below.

In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post.


Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Source link


‘Disability Drives Innovation’ – The New York Times

To hear more audio stories from publications like The New York Times, download Audm for iPhone or Android.This article is part of the...

Cyclone Tauktae: On high alert, Indian Armed Forces deployed to rescue people

Since the major impact is expected to be in Saurashtra including Union Territory of Diu, the army is sending 10 integrated teams which...

Event Hire – How To Choose The Best Event Planner For The Service

Have a big office party coming up and want this event to be absolutely picture-perfect? If yes, a professional event hire team can help...

Zerodha now valued at $2 billion; Nithin Kamath mulls another ESPO buyback this year

Zerodha now valued at $2 billion.India’s largest brokerage firm Zerodha online is planning a buyback of shares from employees this year, valuing the...