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
- European Union scientists say last month was the third-warmest July on record - AP News - August 7th, 2025 [August 7th, 2025]
- Armenias shifting foreign policy towards the European Union. Perspectives and challenges - New Eastern Europe - August 7th, 2025 [August 7th, 2025]
- The European Union's refusal to protect the Russian Gzhel brand was called far-fetched - - - August 7th, 2025 [August 7th, 2025]
- European Union pauses planned retaliatory tariffs on the U.S. for six months - logisticsmgmt.com - August 7th, 2025 [August 7th, 2025]
- Real-world use cases for zero-emission trucks: Heavy tractor-trailers for goods transport in the European Union - International Council on Clean... - August 7th, 2025 [August 7th, 2025]
- This Mediterranean Country Could Join The European Union Affecting All Travelers - Travel Off Path - August 7th, 2025 [August 7th, 2025]
- European Union says it's pausing retaliatory tariffs against the US amid trade talks - KSBY News - August 7th, 2025 [August 7th, 2025]
- European Union contributes 4.4 million for child protection and education in Ukraine - ReliefWeb - August 6th, 2025 [August 6th, 2025]
- Trump threatens the European Union with 35% tariffs if they do not invest 600 billion dollars in the United States - metroworldnews.com - August 6th, 2025 [August 6th, 2025]
- European Union says it's pausing retaliatory tariffs against the US amid trade talks - Scripps News - August 6th, 2025 [August 6th, 2025]
- European Union assumes its faces 15% tariffs in the US from Friday. But a key text still isn't ready - ABC News - August 6th, 2025 [August 6th, 2025]
- Goodis expands Swedish candy delivery to European Union - NJBIZ - August 6th, 2025 [August 6th, 2025]
- European Union expects 15% U.S. tariffs on Friday, but key document still not complete - PBS - August 3rd, 2025 [August 3rd, 2025]
- US Travelers Obtaining ETIAS Authorization to Visit European Union Nations Starting in 2026: Heres More You Need to Know - Travel And Tour World - August 3rd, 2025 [August 3rd, 2025]
- European Union allocates 1.1mn to address urgent water crisis in Iraq - bne IntelliNews - August 3rd, 2025 [August 3rd, 2025]
- European Union Seeks Approval To Remove Liquid Limit In Carry-On Luggage bags, Allowing Up to Two Liters At Airports - Travel And Tour World - August 3rd, 2025 [August 3rd, 2025]
- European Union's Quinoa Market to Grow at CAGR of +2.5%, Reaching $104M by 2035 - IndexBox - August 3rd, 2025 [August 3rd, 2025]
- European Union's Phosphinates and Phosphonates Market: Volume to Reach 26K Tons and Value to Hit $79M by 2035 - IndexBox - August 3rd, 2025 [August 3rd, 2025]
- Statement of the European Union and its Member States on the 5th anniversary of the Beirut Port blast - EEAS - August 3rd, 2025 [August 3rd, 2025]
- European Union Triples Visitor Entry Fee for Travelers What You Need to Know - Travel And Tour World - August 3rd, 2025 [August 3rd, 2025]
- Dodik: The verdict was created by the European Union, Schmidt is the source of disorder in BiH - European Newsroom - August 3rd, 2025 [August 3rd, 2025]
- European Union's Roasted Chicory Market Expected to See 1.5% CAGR Growth, Reaching $674M by 2035 - IndexBox - August 3rd, 2025 [August 3rd, 2025]
- The agreement with the European Union holds: Trump confirms the 15% tariffs. - L'Unione Sarda.it - August 3rd, 2025 [August 3rd, 2025]
- European Union expects to face 15% US tariffs from Friday. But a key text still isnt ready - newspressnow.com - August 3rd, 2025 [August 3rd, 2025]
- European Union expects to face 15% US tariffs from Friday. But a key text still isnt ready - AP News - August 1st, 2025 [August 1st, 2025]
- U.S. and European Union reach trade pact that sets 15-per-cent tariff on EU goods - The Globe and Mail - August 1st, 2025 [August 1st, 2025]
- European Union expects to face 15% US tariffs from Friday. But a key text still isnt ready - WDIO.com - August 1st, 2025 [August 1st, 2025]
- The United States and European Union Trade Deal - Forvis Mazars US - August 1st, 2025 [August 1st, 2025]
- European Union assumes it faces 15% tariffs in the US from Friday. But a key text still isnt ready - fox5sandiego.com - August 1st, 2025 [August 1st, 2025]
- The United States and the European Union Reach a Trade Deal - Council on Foreign Relations - July 30th, 2025 [July 30th, 2025]
- No Majority in the European Union to Suspend Funding for Israeli Startups - Haaretz - July 30th, 2025 [July 30th, 2025]
- President Trump and European Union President Speak After Meeting in Turnberry, Scotland - C-SPAN - July 28th, 2025 [July 28th, 2025]
- Following a European Union Trade Deal, Heres the Top Move You Should Make Today - Yahoo Finance - July 28th, 2025 [July 28th, 2025]
- U.S. and European Union trade deal could cost the pharma industry up to $19 billion - Fast Company - July 28th, 2025 [July 28th, 2025]
- United States and European Union come to terms on trade deal framework - logisticsmgmt.com - July 28th, 2025 [July 28th, 2025]
- Fact Sheet: The United States and European Union Reach Massive Trade Deal - kboi.com - July 28th, 2025 [July 28th, 2025]
- Reaction to the European Union's trade agreement with the Trump administration - Midland Daily News - July 28th, 2025 [July 28th, 2025]
- What's at stake with the European Union-U.S. trading partnership if a tariff deal isn't reached - Wyoming Public Media - July 27th, 2025 [July 27th, 2025]
- China and the European Union Europea: The summit that wasnt - Pressenza - International Press Agency - July 27th, 2025 [July 27th, 2025]
- A group of 32 long-term observers from the European Union were deployed today to the nine departments of Bolivia - EEAS - July 27th, 2025 [July 27th, 2025]
- The French rebel against a pesticide authorised for use in the European Union - Euronews.com - July 27th, 2025 [July 27th, 2025]
- European Union has the votes to impose retaliatory tariffs on U.S. - upi.com - July 24th, 2025 [July 24th, 2025]
- European Union: Concerns over systematic restrictions against solidarity with the Palestinian people - fidh.org - July 24th, 2025 [July 24th, 2025]
- China and the European Union: The End of Strategic Ambiguity - Robert Lansing Institute - July 24th, 2025 [July 24th, 2025]
- The European Union Could Force All Rental Car Companies to Buy EVs As Early As 2030 - Road & Track - July 22nd, 2025 [July 22nd, 2025]
- European Union | ETIAS fee has increased to 20 euros - BAL Immigration Law - July 22nd, 2025 [July 22nd, 2025]
- European Union's Black Printing Ink Market to See Modest Growth with CAGR of +1.4% from 2024 to 2035 - IndexBox - July 22nd, 2025 [July 22nd, 2025]
- Confirmed Trump imposes 30% tariffs on the European Union and Mexico as of August 1 - Blanquivioletas - July 22nd, 2025 [July 22nd, 2025]
- European Union's Acyclic Hydrocarbons Derivatives Market to Experience Slight Growth with CAGR of +0.7% - IndexBox - July 22nd, 2025 [July 22nd, 2025]
- European Union's Almond Market to Grow at a Decelerating Rate with a CAGR of +0.8% from 2024 to 2035 - IndexBox - July 22nd, 2025 [July 22nd, 2025]
- European Union's Wheat Market Expected to Reach 118M Tons and $34.3B by 2035 - IndexBox - July 20th, 2025 [July 20th, 2025]
- European Union's Nail and Bolt Market to Grow at +1.2% CAGR Over the Next Decade - IndexBox - July 20th, 2025 [July 20th, 2025]
- European Union's HVAC Equipment Market to Grow at +1.0% CAGR, Reaching 932M Units by 2035 - IndexBox - July 20th, 2025 [July 20th, 2025]
- European Union's Vacuum Pumps and Air or Gas Compressors Market to Witness 1.8% CAGR Growth from 2024 to 2035 - IndexBox - July 20th, 2025 [July 20th, 2025]
- European Union's Confectionery Market to Experience Slow Growth with CAGR of +1.2% - IndexBox - July 20th, 2025 [July 20th, 2025]
- European Union increasing pressure on Russia to end invasion of Ukraine - WFAA - July 20th, 2025 [July 20th, 2025]
- European Union's Flat Hot-Rolled Steel in Coils Market to Grow at +1.4% CAGR, Reaching 37M Tons by 2035 - IndexBox - July 20th, 2025 [July 20th, 2025]
- The European Union Passed Its Artificial Intelligence Bill. Will It Enforce It? - Billboard - July 20th, 2025 [July 20th, 2025]
- Solidarity visit to Ukraine: COMECE witnesses the scale of human loss - The Catholic Church in the European Union - July 20th, 2025 [July 20th, 2025]
- Briefing paper for the 13th European Union-Vietnam human rights dialogue - fidh.org - July 18th, 2025 [July 18th, 2025]
- How Important Are the Turkic States to the European Union, and in What Areas? - Hungarian Conservative - July 16th, 2025 [July 16th, 2025]
- European Union threatens tariff retaliation after Trumps trade move - CGTN America - July 16th, 2025 [July 16th, 2025]
- European Union Responds to Trump Tariffs by Targeting Boeing, U.S. Cars and Bourbon - CPA Practice Advisor - July 16th, 2025 [July 16th, 2025]
- EU expands sanctions against Russia for destabilization in the European Union and Ukraine - - July 16th, 2025 [July 16th, 2025]
- Nine Iranian individuals and entities added to the European Union's new sanctions list - Iran Focus - July 16th, 2025 [July 16th, 2025]
- European Union to delay retaliatory tariffs on U.S. goods in hopes of reaching deal - CBS News - July 14th, 2025 [July 14th, 2025]
- Trump announces tariffs of 30% on Mexico and the European Union - CNN - July 14th, 2025 [July 14th, 2025]
- Video Trump threatens the European Union and Mexico with new tariffs - ABC News - Breaking News, Latest News and Videos - July 14th, 2025 [July 14th, 2025]
- European Union on the ropes as Trump and China turn the screws - South China Morning Post - July 14th, 2025 [July 14th, 2025]
- Trump announces tariffs on European Union, Mexico starting in August - CBS News - July 14th, 2025 [July 14th, 2025]
- EUR/USD rises to near 1.1700 due to Trumps tariff threats on European Union - FXStreet - July 14th, 2025 [July 14th, 2025]
- Trump: European Union in discussions with us on trade - Forex Factory - July 14th, 2025 [July 14th, 2025]
- Trump announces 30% tariffs on Mexico and European Union starting Aug. 1 - CBS News - July 14th, 2025 [July 14th, 2025]
- Trump Announces 30% Tariffs On European Union And Mexico As Trade War Ramps Up Again - HuffPost - July 14th, 2025 [July 14th, 2025]
- Trump announces 30% tariff on European Union and Mexico - The Economic Times - July 14th, 2025 [July 14th, 2025]
- Trump announces 30 percent tariffs against European Union and Mexico - The Boston Globe - July 12th, 2025 [July 12th, 2025]
- Trump announces shocking new tariffs for European Union and Mexico that will have a major impact - UNILAD - July 12th, 2025 [July 12th, 2025]
- Trump announces tariffs of 30% on Mexico and the European Union - KTVZ - July 12th, 2025 [July 12th, 2025]
- Israel, European Union reach deal on more aid, fuel deliveries to Gaza - The Washington Post - July 12th, 2025 [July 12th, 2025]
- Trump hits the European Union (EU) with a 30% tariff, starting on August 1 - Forexlive | Forex News, Technical Analysis & Trading Tools - July 12th, 2025 [July 12th, 2025]