Donald Trump has declared a global trade war, sparing none of the most fragile countries. This offensive affects almost every country in the world, except Canada and Mexico, which have signed a free trade agreement, as well as Russia, North Korea, Belarus and Cuba.
The European Union's response, expressed by President Ursula Von der Leyen, has caused strong bewilderment. “Negotiate with the United States, diversify trade partnerships and strengthen the single market. We will open doors to fast-growing markets”, she stated this week during the plenary session of the European Parliament in Strasbourg, citing the example of Mercosur in particular.
“Strengthening the single market should be the top priority. The fragmentation of the single market costs the EU €990 billion every year. The Draghi report tells us that to restore growth, the European Union would need a common industrial policy, covering innovation but also decarbonisation and securing our economies, which would cost €800 billion a year. By completing the single market as a matter of urgency, we would already have a very effective response for our economies, one that depends only on our political will.” Benoît Cassart stressed
The Commission President announced a firm response from the European Union, calling for unity among the 27, while at the same time expressing a willingness to negotiate with the Trump administration. “Of course a response is necessary, because if the European Union does not impose tariffs in return, we risk our companies, particularly those that already have production sites in the United States, relocating and exporting goods to the EU. This is all the more true since energy prices are cheaper on the other side of the Atlantic, which would translate into a double competitive advantage. European unity is of course essential, but negotiating today means proving Trump right. Canada has shown that firmness works best with him.” added Benoît Cassart, member of the International Trade Committee of the European Parliament.
The impacts of the trade war as presented overnight by the Trump administration will be very heavy for businesses and consumers worldwide, and growth in the European Union will take a hit. Nevertheless, thinking that signing Mercosur is part of the solution reflects “a short-term vision”, or even “a sign of panic”, according to Belgian MEP Benoît Cassart.
“The Mercosur agreement does not become virtuous just because Trump has decided to wage war on the whole world; let's not forget that this agreement raises real questions regarding environmental protection, biodiversity, and compliance with our social and consumer protection standards. Let's take the time to negotiate it with all the necessary reciprocity clauses and not act out of panic. Trump's attitude should rather open our eyes to the danger of depending on unstable countries and leaders. I would not be reassured to know that my children's food sovereignty depends on leaders such as Javier Milei in Argentina, not to mention the risk of a Bolsonaro returning to power in Brazil. We expect the European Commission to produce a realistic and balanced plan for strategic autonomy, including in food.” protested Benoît Cassart, farmer and MEP.