Title: EU Pushes Back Against Protectionist Forces
Article author: Simon Nixon
Time published: September 25, 2016 at 1:13pm ET
The EU Pushes Back Against Protectionist Forces focuses on what measures the European Union is taking in order to remain a free trade partner and maintain a competitive position on the global economy. Many of its representatives are trying to enforce a protectionist agenda – attempting to slowly shrink the EU’s involvement in the global economy. The two sides have a certainly different set of beliefs. The free traders believe that a country with low natural resources requires being open to globalization and understands that there is no going back as far as globalization is concerned. The economies are now too intertwined in order to reverse the clock back. The other side envisions a European fortress of sorts that would block most of the global companies from coming in with very high tariffs. In order to combat this opinion, the EU took a few very important steps to show their continued pledge to open markets. The three steps are as follows:
1. They strongly supported the Canada-EU Comprehensive Economic and Trade Agreement (CETA)
2. They refused to stonewall the Trans-Atlantic Trade and Investment Partnership with the United States (TTIP)
3. Lastly, the trade ministers agreed to back a “commission proposal to overhaul the EU’s anti-dumping policies”. This would allow China to finally be recognized as a market economy.
The economy of all nations, at this point in time, are very intertwined and codependent. If the EU were to close its doors to international trade and globalization, the repercussions would be felt on a global scale. This is best demonstrated by the consequences of Brexit being passed – namely stock prices fell and interest rates were affected. Additionally, multitudes jobs would be lost and taxes could increase exponentially. Companies would have to find new markets to promote to and the entire balance of the economy would shift.