Post Magazine

We don't agree with Trump, but that doesn't mean we want to gang up on America with China, says senior EU adviser

The European Union is reluctant to "gang up" on America with China despite calls to provide a counterweight to Donald Trump's protectionist policies, the head of an EU advisory body has said.

Luca Jahier, the president of the European Economic and Social Committee, told the South China Morning Post that the US still remains an important political and economic partner of the EU, even though the EU opposed Trump tariff measures.

Jahier said he strongly opposes protectionism, but escalating the situation would not be the appropriate response.

Luca Jahier said the EU also had its differences with China. Photo: European Economic and Social Committee

"We ought to be careful not to respond to aggressive behaviour with aggressive behaviour. I don't believe trade wars can be resolved by [adopting] protectionist stances," Jahier said.

"The European Union has already seen the dire consequences of those policies in the past, and has learned its lessons," he added.

Jahier was speaking ahead of Monday's high level EU-China dialogue.

On July 6, the US imposed tariffs on Chinese goods worth US$34 billion to which China responded with similar measures.

Jahier said the EU-China relationship was important because the bloc is China's second biggest trade partner. But he also argued that the EU still faces myriad difficulties in accessing the Chinese market and called for Beijing to do more to ensure fair competition.

"We want that to change."

Both the US and EU have shared concerns on issues such as market access, intellectual property rights violations and government subsidies to hi-tech industries.

But Trump's tariff measures have pushed Brussels and Washington further apart and China has asked the EU to work with it to oppose protectionism, including by setting up a working group at the World Trade Organisation.

European Commission President Jean Claude Juncker, left, China's Premier Li Keqiang and European Council President Donald Tusk pictured in 2015. Photo: EPA

Jahier said: "China, the US and the EU countries are members of the WTO, and are obliged to [follow its] practices ... We expect the US and China to tackle their differences on that basis," he said.

"Since the mid-20th century, the EU has firmly contributed to internationally agreed rules and institutions together with the US. We believe in the strength and validity of those mechanisms."

But Jahier acknowledged that existing rules and institutions also have room for further improvements.

"The EU is working hard to create a level playing field for all countries and reciprocity is crucial to create that," he said.

He also said that if the US started putting tariffs on European goods the EU would act to protect its own interests.

"We will not sit idly by while our industry is [being] hit with unfair measures which put thousands of European jobs at risk," he said.

Trump said in June that he may impose tariffs on European cars.

"The trade war is more like the Trump administration versus the rest of the world and this go-it-alone action doesn't help the global economy," Jahier said.

This article originally appeared on the South China Morning Post (SCMP).

Copyright (c) 2018. South China Morning Post Publishers Ltd. All rights reserved.

More from Post Magazine

Post Magazine7 min readPolitics
Free From Chinese Repression, Desperate Dissidents In US Cling To Tradition Of Petitioning To Air Grievances
Chinese Vice-Premier Liu He came to Washington at the end of January for two days of negotiations and a meeting with US President Donald Trump in search of a trade war breakthrough. But Bai Jiemin, a former businessman from China now living under pol
Post Magazine4 min readPolitics
Donald Trump's March Tariffs Could Hit China's GDP By Under 1 Per Cent - But Do Lasting Wider Damage, Experts Warn
Chinese and US negotiators are facing a critical moment in the next two weeks as the two sides try to keep a lid on tensions and reach a deal to end the trade war. Officials from both sides said progress was made in the latest round of talks that wra
Post Magazine3 min readPolitics
Trade War Talks: China And US Said To Be Far Apart On Framework For Monitoring Chinese Action On Structural Reform; US Could Possibly Drop 10 Per Cent Tariffs
Chinese and American negotiators remain far apart on a key US demand meant to ensure Beijing honours any commitment to equal market access and intellectual property protection " an issue the US team sees as crucial in reaching a deal to end the month