U.S selfishness on trade,Eu says: world needs a better WTO

Though it was too early, it was too early to say that the EUU.S. trade talks were destined to fail, European Commission Vice President Jyrki Katainen said on Tuesday that Washington’s “selfish” approach to trade was unsustainable.

The US has begun a fierce trading war with China in an attempt to correct what it sees as unfavorable conditions that contribute to a US trade deficit of over half a trillion dollars a year. While Trump administration has imposed tight tariffs on imports steel and aluminum.

The talks of a European Union commission with US authorities continue since last year, striving to reach a trade agreement with the latter.

Washington has until May to decide if it will do well in President Donald Trump’s threat of imposing tariffs on European car imports, while EU governments are now discussing details of a negotiating mandate for the Commission.

Katainen at a regular news conference, said: “It’s too early to say that our trade discussions are destined to fail.”

Adding that the purpose of the negotiations had to be clear and that an agreement would require a lot of goodwill and political capital on both sides, he said: “There are discussions at several levels and … we can end up having one kind of agreement with the US on trade, but we should not go deeper than that. ”

Asked about a World Trade Organization (WTO) reform, Katainen said it was problematic and that trying to do it was like postponing a rope.

He stressed that “Japan, China and the EU are ready to reform the WTO, the US has not been so interested, but they are willing to cooperate.”

Katainen added, “Although US authorities may think that selfishness is better than co-operation, it is not a viable way of thinking. We need more trade based on future rules where the international community set rules “.

Despite dramatic changes, including China’s growth and internet evolution, US Trade Representative Robert Lighthizer told Congress last week that the WTO is using a new “outdated” book.

He said Washington was working “diligently” to negotiate new WTO rules to address these problems./Investing.com

 

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