Germany and France agree new trade tool to counter China
Paris and Berlin call for a new EU "systemic reaction" tool that would let Brussels move fast to counter China-driven market distortions, as well as retaliation planning and a revamp of trade defence tools.
France and Germany have proposed new EU powers to counter trade distortions posed by China, as the European Union faces mounting pressure from the Asian giant. In a letter to Commission President Ursula von der Leyen, the leaders called for tools to limit market access, diversify supplies and prepare for potential retaliation. The EU's trade deficit with China is estimated at €1 billion per day, and Berlin and Paris have given Beijing until this month to offer concessions.
The proposal will be discussed at next week's European Council summit. New tools would be activated when third countries undermine fair market conditions, allowing the Commission to act swiftly through a comitology procedure. Paris and Berlin also want a diversification instrument to reduce dependence on Chinese imports and prevent emerging supply chain risks.
Finally, the proposal calls for measures to strengthen trade defences, such as increasing the use of existing trade defence tools and broadening sector-wide trade dispute rules.
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Also reported by 4 other outlets
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- Germany and France agree new trade tool to counter China euronews.com
