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BRUSSELS - China and the European Union (EU) have both voiced their
firm objections to US tariffs on steel and aluminum, and are expected to
collaborate more closely to uphold multilateralism and free trade.
Despite worldwide opposition, US President Donald Trump announced in
March a 25-percent tariff on imported steel and a 10-percent tariff on
aluminum. The administration had given temporary exemptions for EU
member states, Canada and Mexico until June 1.
Shortly after the end of the exemption, the EU initiated a dispute
with the United States at the WTO, and announced Wednesday the start of
applying rebalancing duties on US products in July, as part of the
"three-pronged response."
In late April, the EU had sought to join the consultations at the WTO
requested by China with the United States on the US tariffs, saying
that it has substantial trade interests in the matter.
In a statement, European Commission President Jean-Claude Juncker
lambasted US tariffs, saying that "this is protectionism, pure and
simple."
"We regret that the United States left us with no other option than
to safeguard EU interests," EU Trade Commissioner Cecilia Malmstrom
said.
Meanwhile, China's Foreign Ministry spokesperson Hua Chunying said
earlier that unilateralism and trade protectionism are harmful and offer
no benefits in a deeply integrated global economy.
China has decided to slash its automobile import tariffs from July 1,
as part of its opening-up efforts aimed at strengthening a rule-based
and multilateral global trade system. The world's second largest economy
has also announced an increase imports from other countries.
Gabriel Felbermayer, a trade expert at the Ifo institute in Munich,
said while economic damage from the steel and aluminium tariffs would be
"limited" at first, they would be "only the beginning of a row of
further US measures."
Felbermayer suggested the EU maintain a united front in opposition to
the measures together with other international partners like China,
which is interested in upholding a multilateral system based on fair
trade.
Last week, top diplomats of the two sides already pledged to deepen
strategic cooperation and safeguard multilateralism, as Chinese State
Councilor and Foreign Minister Wang Yi and EU foreign policy chief
Federica Mogherini co-chaired the eighth round of the China-EU
high-level strategic dialogue in Brussels.
Noting that unilateralism and protectionism are on the rise, Wang
said China and the EU should closely cooperate to combat any threat to
free trade.
Mogherini, for her part, said that the EU is willing to work with
China to uphold the multilateral system with the United Nations at the
core, and a rules-based international order.
As Trump's protectionism creates more chaos and uncertainties
worldwide, more resilience and perseverance is badly needed for an open
and fair trade system. In this regard, China and EU, which share
substantially the same view on preserving multilateralism, globalization
and free trade, have tremendous potential in the cooperation to tackle
protectionism.
In response to its unilateral measures, other trading partners of the
United States are also joining the fight. Last week, Canada filed a
challenge at the WTO against the US tariffs on steel and aluminum hours
after EU and announced retaliatory tariffs. Mexico responded with
similar measures on Tuesday, targeting the American steel, aluminum and
agricultural sectors.
As the international situation is undergoing complicated and profound
changes, safeguarding multilateralism and free trade is not only at
stake for the EU and China, but also for the rest of the world, said
Juncker.
http://usa.chinadaily.com.cn/a/201806/08/WS5b1a18e2a31001b82571ef29.html
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