EU Trade Diplomacy Towards North America

“In the trade dispute with the US, the EU must finally adopt a proactive approach. Instead of merely reacting to Trump’s erratic policies, it should take the initiative with a comprehensive negotiation offer of its own,” says cep economist André Wolf, who co-authored the study with Eleonora Poli. Considering potential new tariffs and growing digital dependence, cep recommends not only closer technological cooperation via the Trade and Technology Council but also points to its own proposal for a fair taxation model for digital giants – as a strategic counterweight in the transatlantic relationship.

In contrast, relations with Canada are more stable and value based. The CETA agreement provides a reliable foundation for new strategic alliances – particularly in energy, hydrogen and critical raw materials. “Although Canada itself cannot replace the US in the European trade diplomacy, CETA allowed for trade relations between the two side of the Atlantic to increase more than 65%, deepening cooperation also in strategic areas such as climate change and sustainable development and becoming a clear sign that a rule based multilateral order is still possible,” says cep economist Eleonora Poli.

cep sees the EU as having a responsibility to take an active role in reshaping the transatlantic order – by asserting its own interests clearly, while also showing a willingness for constructive cooperation.