Not the time to mess with EU-US trade, EU's Costa says

KANANASKIS, Alberta — Europe and the United States should focus on how the bloc takes more responsibility for its defence rather than creating economic uncertainty through trade tensions, European Union President Antonio Costa said on Sunday (June 15).

Speaking to reporters with European Commission President Ursula von der Leyen ahead of a gathering of G7 leaders in the Canadian Rockies, Costa said the two days of meetings provide an opportunity to talk about "some problems" between the allies and friends.

"The main issue between Europe and the United States is precisely about European defence, and we should focus on (this)," Costa said, referring to Washington's rebalancing of foreign policy towards countering China.

"Because this is the main issue we should avoid introducing other issues that undermine our economic capacity to assume greater responsibility on our own defence."

US President Donald Trump backed away from his threat to impose 50 per cent tariffs on imports from the European Union next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal.

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Speaking alongside Costa, von der Leyen said the trade talks with Washington were now focussing on the details, but there was no guarantee of a deal.

"That's why this is not the right moment to create uncertainty on economics. It is not the right moment to create problems on trade, because we need to strengthen our economic basis," Costa said.

"We are talking about the most relevant trade relations in the world, then we need to protect this and focus on what is the most important which is to have a good agreement between the EU and the United States about the burden sharing on defence."

Underscoring Costa's comments, von der Leyen said the G7 had to avoid protectionism.

"This is an important message. A message that the G7 can send to the markets and to the world," she said.

Source: Reuters