The European Unions trade policy will involve some tough negotiations – The Economist
Feb 27th 2020
WASHINGTON, DC
IF THE TRUMP administrations America is the bully of the global trading system, the European Union is the finger-wagging school prefect. Instead of threatening tariffs, its leaders have called for countries to play fairly. As a trade war has raged between America and China, the EU suggested a rules-based solution. When the Trump administration wrecked the system of solving disputes at the World Trade Organisation (WTO), the EU led the search for a fix. As the worlds biggest exporter of services and second only to China for goods, it has a sizeable stake in preserving order.
Enter Phil Hogan, the EUs burly trade commissioner since December 2019. The EU is still a stickler for rules and the multilateralism that Mr Hogan says is in our DNA. But he wants to wield a bigger stick. We have to stand up for our rights more assertively and aggressively, in my view, he tells The Economist. By this he means defending the EU against unfair trading practices. The challenges range from concerns about Chinas state-led system of capitalism to fears that the EUs trading partners are not living up to their commitments.
Part of his brief involves continuing efforts to rescue the system by which the WTO solves disputes. Meanwhile he will have to manage the tense transatlantic relationship. If the job was not daunting enough, he will help negotiate what he hopes will be an amicable trade deal with Britain.
Mr Hogans reputation as a canny politician willing to make tough decisionshis nickname in Irish politics was the enforcer suggests that he may be right for the job. On behalf of his home county of Kilkenny, where he entered Irish politics at the age of 22, he haggled effectively (for example, ensuring that the regions salt depot was in Kilkenny, partly so that in case of ice the local roads would be salted first). He is no flat tyre, as one Leinster admirer puts it. Later he drew controversy when in 2011, as Irelands Minister for Environment, Community and Local Government, he was put in charge of introducing unpopular water charges. It damaged his reputation. But as a consolation prize, the Irish government backed him as the EUs agriculture commissioner.
His experience over the following five years meant that he became intimately acquainted with the EUs most sensitive spots. Alongside Cecilia Malmstrm, then the EUs trade commissioner, he boasts of concluding no fewer than 15 trade agreements. According to some of the negotiators who were on the opposite side of the table, while he could be both charming and funny, his strategies to avoid giving concessions could be deeply frustrating. In some cases, he simply declined to show up.
The American government may roll its eyes at the talk of a tougher EU trade regime. Some in America could accuse the bloc of being too timid about using tariffs to get its own way with trading partners, and too weak to overcome the protectionist instincts of its member states. They ask why, if the EU is so concerned about the demise of the WTOS dispute-settlement system, it ignored Americas complaints about it for so long? Where, they ask, was the EU while America was filing WTO disputes against China? Tough talk is cheap, results will require action.
Mr Hogans first priority is to add muscle to the EUs defences. From May 1st he will oversee a new chief trade-enforcement officer, as well as new enforcement unit dedicated to making sure that existing trade deals are implemented properly. The European Commission is proposing new rules that would sharpen the EUs teeth, including an amendment to enforcement regulations that would allow tariffs against other governments blocking the WTOs dispute-settlement system. On the topic of the WTOs appellate body, Mr Hogan acknowledges some of the American concerns, but adds that he would love to see detailed proposals for solutions to the problems from the Trump administration.
Whether he can maintain stable trade relations with America is another matter. He raised hackles in September after an interview in which he promised to teach Mr Trump the error of his ways. Then in a meeting in January he seems to have clashed with Robert Lighthizer, the United States Trade Representative. If he tries to bring more assertiveness into the EUs side of the transatlantic relationship it could end badly. Stephen Vaughn, an ex-colleague of Mr Lighthizer, warns that attempts to play hardball could backfire.
The Americans want, above all, broad access to the EUs agricultural marketmore than the lobsters, scallops and nuts that are on offer. (Seafood technically counts as an industrial product.) But as Mr Hogan knows well from his previous job, anything much broader than dismantling a few non-tariff agricultural barriers is unpalatable to member states.
He remains upbeat about the transatlantic relationship. I think that were in a better place now than we were some months ago, he says. On February 14th a tariff announcement related to a dispute over aircraft subsidies was milder than expected. A reduction in car tariffs could be on the table, he adds, if member states agree. His challenge is not just to get trade partners to play by the rules. It is to get his own side on board, too.
This article appeared in the Finance and economics section of the print edition under the headline "Hulk Hogan"
More:
The European Unions trade policy will involve some tough negotiations - The Economist
- Rare earth access is the European Union's priority at China summit - Reuters - June 20th, 2025 [June 20th, 2025]
- Germany, Italy, Netherlands, Spain, Czech Republic, Denmark and Twenty One Countries in European Union Threatening to Suspend Israel Schengen Visa... - June 20th, 2025 [June 20th, 2025]
- European Union's Lifts and Elevators Market to Grow at a CAGR of +0.9% through 2035, Expected to Reach 665K Units - IndexBox - June 20th, 2025 [June 20th, 2025]
- European Union's Packaging Machinery Market to Increase at a CAGR of +2.2% Reaching $6.3B by 2035 - IndexBox - June 20th, 2025 [June 20th, 2025]
- The European Union announced the rejection of Russian gas at the wrong time: the price is approaching $ 500 - EADaily - June 20th, 2025 [June 20th, 2025]
- The European Union Watches from the Sidelines - inss.org.il - June 20th, 2025 [June 20th, 2025]
- How is disinformation addressed in the member states of the European Union? 27 country cases - EDMO.eu - June 18th, 2025 [June 18th, 2025]
- Literature review on actors of disinformation in the European Union - EDMO.eu - June 18th, 2025 [June 18th, 2025]
- Akriila and the European Union collaborate to give voice to Chiles clean energy future in new track The Power - EEAS - June 18th, 2025 [June 18th, 2025]
- Israel/Iran: Statement by the High Representative on behalf of the European Union - consilium.europa.eu - June 18th, 2025 [June 18th, 2025]
- Trump Drops Papers He Just Signed and Mistakenly Refers to the U.K. as The European Union - Mediaite - June 18th, 2025 [June 18th, 2025]
- In April, imports of plywood to European Union increase 5% - lesprom.com - June 18th, 2025 [June 18th, 2025]
- European Union warns of retaliation over Trumps steel tariff hike - The Indian Express - June 1st, 2025 [June 1st, 2025]
- News: NATO and the European Union unite for Ukraine at a NAC - PSC meeting, 28-May.-2025 - NATO - Homepage - June 1st, 2025 [June 1st, 2025]
- Its Time for Israel To Join the European Union - The Media Line - June 1st, 2025 [June 1st, 2025]
- Beijing-based Ambassadors of the European Political Community (EPC) met at the European Union Delegation to China - EEAS - June 1st, 2025 [June 1st, 2025]
- Tech tariffs? A brewing conflict with the European Union and within the Trump administration - Washington Examiner - June 1st, 2025 [June 1st, 2025]
- European Union on its way to reach a 54% GHG emissions reduction by 2030 - Enerdata - June 1st, 2025 [June 1st, 2025]
- Trump Advisor Jason Miller Warns of the Threat European Union Poses to Free Speech - floridianpress.com - June 1st, 2025 [June 1st, 2025]
- Trump says trade negotiations to begin soon between U.S. and European Union - MSNBC News - June 1st, 2025 [June 1st, 2025]
- European Union accuses TikTok of breaching digital rules with lack of transparency on ads - AP News - May 15th, 2025 [May 15th, 2025]
- What should the European Union aim for in a trade deal with Trump? - Bruegel - May 15th, 2025 [May 15th, 2025]
- European Union accuses TikTok of breaching digital rules with lack of transparency on ads - Ottumwa Courier - May 15th, 2025 [May 15th, 2025]
- European Union election observation mission publishes its final report with 19 recommendations; genuine political will needed to reinforce democratic... - May 15th, 2025 [May 15th, 2025]
- Digital Anonymity in Danger! What is the European Union deciding? - Red Hot Cyber - May 15th, 2025 [May 15th, 2025]
- The European Union and the United States reach an agreement to enhance trade talks - - May 15th, 2025 [May 15th, 2025]
- EU and UK at loggerheads over fishing rights and youth mobility | European Union - The Guardian - May 15th, 2025 [May 15th, 2025]
- European Union agrees on 17th sanction package against Russia (VGK:NYSEARCA) - Seeking Alpha - May 14th, 2025 [May 14th, 2025]
- The European Union celebrates Europe Day 2025 with the exhibition Panama and Europe: routes that connect - EEAS - May 14th, 2025 [May 14th, 2025]
- European Union's Nails and Staples Market Expected to Grow at CAGR of +0.9% Over Next Decade - IndexBox - May 14th, 2025 [May 14th, 2025]
- Gavin Willsey reaches milestone at the Midwest Model European Union competition - Stephen F. Austin State University - May 10th, 2025 [May 10th, 2025]
- Europe Day NYC: Celebrating 75 years of the European Union, from vision to reality - EEAS - May 10th, 2025 [May 10th, 2025]
- Meet the MEP who wants to bring Canada into the European Union - Euronews.com - May 10th, 2025 [May 10th, 2025]
- European Union: The European Commission's action plan to drive innovation, sustainability and competitiveness in the automotive sector - Global... - May 10th, 2025 [May 10th, 2025]
- European Union launches $566 million drive to attract researchers scared off by Trump moves on science and universities - Fortune - May 10th, 2025 [May 10th, 2025]
- Georgians Risk Losing Their Visa-Free Travel Privileges To The European Union Amid Growing Tensions - Travel And Tour World - May 10th, 2025 [May 10th, 2025]
- The Delegation of the European Union to the Republic of Korea Marking Europe Day 2025 under the Theme "Partnering for Peace and Security" -... - May 10th, 2025 [May 10th, 2025]
- 'We call on the European Union to endorse a confederation of the states of Israel and Palestine in one homeland' - Le Monde.fr - May 3rd, 2025 [May 3rd, 2025]
- The European Union does not plan to participate in the settlement of the conflict on Ukraine - EADaily - May 3rd, 2025 [May 3rd, 2025]
- European Union's Soybean Oil Market to Grow at a CAGR of +0.8% Over the Next Decade - IndexBox - May 3rd, 2025 [May 3rd, 2025]
- European Union's Methanol Market to Exhibit Slow Growth with CAGR of +0.2% through 2035 - IndexBox - May 3rd, 2025 [May 3rd, 2025]
- European Union's Alumina Market to Reach 7.1M Tons and $4.8B by 2035 - IndexBox - May 3rd, 2025 [May 3rd, 2025]
- European Union's Stranded Wire, Ropes and Cables Market to Reach 1.6M Tons and $6.6B by 2035 - IndexBox - May 3rd, 2025 [May 3rd, 2025]
- European Union's Frozen Potatoes Market to Witness Strong Growth with CAGR of +5.7% from 2024 to 2035 - IndexBox - May 3rd, 2025 [May 3rd, 2025]
- The European Union just issued a dire warning to its 450 million citizens: Stockpile supplies and prepare for disaster - Fortune - March 26th, 2025 [March 26th, 2025]
- The European Union is preparing for war and is calling for emergency reserves in every home - CiberCuba - March 26th, 2025 [March 26th, 2025]
- The European Union rejected Russias demand for a ceasefire in exchange for lifting sanctions - - March 26th, 2025 [March 26th, 2025]
- Exclusive | European Union to slap Meta with fine up to $1B or more for breaching strict antitrust rules: sources - New York Post - March 26th, 2025 [March 26th, 2025]
- Peter Rough sat down with Kaja Kallas, European Union high representative for foreign affairs and security policy and European Commission vice... - March 26th, 2025 [March 26th, 2025]
- Court of Justice of the European Union: Member states representatives appoint thirteen judges to the General Court - consilium.europa.eu - March 26th, 2025 [March 26th, 2025]
- When the European Union wants to get back to basics - Marketscreener.com - March 26th, 2025 [March 26th, 2025]
- The European Union urges citizens to stockpile supplies to last 3 days in case of crisis - Goshen News - March 26th, 2025 [March 26th, 2025]
- The European Union urges citizens to stockpile supplies to last 3 days in case of crisis - Oil City Derrick - March 26th, 2025 [March 26th, 2025]
- European Union's Transmission Shafts and Cranks Market Expected to Slightly Increase with a CAGR of +0.3% over the Next Decade - IndexBox, Inc. - March 26th, 2025 [March 26th, 2025]
- New European Union Plan To Boost Local Arms Production Would Freeze U.S. Out Of Billions - The War Zone - March 26th, 2025 [March 26th, 2025]
- European Union's Roasted Coffee Market to See Continued Growth with +0.6% CAGR by 2035 - IndexBox, Inc. - March 26th, 2025 [March 26th, 2025]
- EU Penalizes RPM And Other Vertical Conduct Violations - Cartels, Monopolies - European Union - Mondaq News Alerts - March 26th, 2025 [March 26th, 2025]
- European Union's Toilet Paper Market to Reach $27.1B by 2035 with +0.5% CAGR - IndexBox, Inc. - March 26th, 2025 [March 26th, 2025]
- European Union Delays Retaliatory Tariffs On U.S. ProductsIncluding Whiskey - Forbes - March 20th, 2025 [March 20th, 2025]
- ICC President visits Brussels, urges European Union to take immediate action to protect the Court - the International Criminal Court - March 20th, 2025 [March 20th, 2025]
- The European Sting is Your democratic, independent and top quality political newspaper specialized in European Union News. Unique Features: iSting... - March 20th, 2025 [March 20th, 2025]
- The Prime Minister of Slovakia supported Ukraine's integration into the European Union - Eurasia Daily - March 20th, 2025 [March 20th, 2025]
- Trump reacts to European Union slapping tariffs on U.S. goods - CBS News - March 13th, 2025 [March 13th, 2025]
- Rxulti approved in the European Union for adolescent schizophrenia - PharmaTimes - March 13th, 2025 [March 13th, 2025]
- European Union Responds With Tariffs on Soybeans, Other Ag Exports - DTN The Progressive Farmer - March 13th, 2025 [March 13th, 2025]
- European Union retaliates with tariffs on $28 billion U.S. products - RFD-TV - March 13th, 2025 [March 13th, 2025]
- Donald Trump threatens European Union with 200% tariffs on specific goods if they dont remove nasty tax - UNILAD - March 13th, 2025 [March 13th, 2025]
- Canada and the European Union announce retaliatory tariffs against the United States - KREM.com - March 13th, 2025 [March 13th, 2025]
- Commission decides to refer SPAIN to the Court of Justice of the European Union due to discriminatory tax treatment of non-resident taxpayers - The... - March 13th, 2025 [March 13th, 2025]
- European Union hits back with counter tariffs on US goods - USA TODAY - March 13th, 2025 [March 13th, 2025]
- Trade Wars: European Union Retaliates Against U.S. Tariffs on Steel and Aluminum - TipRanks - March 13th, 2025 [March 13th, 2025]
- Commission hosts event to gather input and expertise on upcoming European Water Resilience Strategy - European Union - March 7th, 2025 [March 7th, 2025]
- UNESCO and the European Union Promote Training in Creative Tourism in the Caribbean - UNESCO - March 7th, 2025 [March 7th, 2025]
- The Interests of the European Union and the United States Are Diverging - Modern Diplomacy - March 7th, 2025 [March 7th, 2025]
- Tunisia: Call for the European Union to send international observers to the so-called "conspiracy" trial - FIDH - March 7th, 2025 [March 7th, 2025]
- European Union Blasts Trump Tariff Threats as Starmer Visits White House - Newsweek - February 27th, 2025 [February 27th, 2025]
- Trump vows to slap 25% tariffs on the European Union - FRANCE 24 English - February 27th, 2025 [February 27th, 2025]
- Trump vows to impose 25% tariffs on imports from the European Union - The Associated Press - February 27th, 2025 [February 27th, 2025]
- Trump says tariff level will be 25% on European Union products - Le Monde - February 27th, 2025 [February 27th, 2025]
- EU reaffirms unwavering support to Ukraine on anniversary of invasion - European Union - February 27th, 2025 [February 27th, 2025]