EU Seeks to Simplify Trade Within the Bloc and Counter US Tariffs
The European Commission is set to unveil a new strategy on Wednesday, aimed at streamlining trade within the EU and, in turn, preparing the bloc to counter the tariffs imposed by the US government. The plan, as reported by the World, involves the removal of remaining barriers on the EU’s internal market.
According to the document, the Commission sees the EU as a “safe harbor” in a world beset by economic uncertainty and trade conflicts. The EU’s internal market is a more stable environment, where economic partners are the most important ones. The Commission estimates that a 2.4% increase in intra-EU trade could offset a 20% decline in exports to the US, caused by the ongoing trade tensions.
The proposed measures have received a positive response from the business community. “Simplification for small and medium-sized enterprises, fewer obstacles, more digitalization: These proposals by the Commission to strengthen the internal market are rightly well-received in the economy” said Moritz Hundhausen, Brussels representative of the Family Enterprises and Politics Foundation. Many companies still face hurdles when operating across the EU, such as national licensing procedures and complex rules for the deployment of skilled workers.
The Commission identifies the “Terrible Ten” – the top ten barriers to be removed – most of which have remained the same for the past 20 years. These include, for instance, the lack of harmonized norms for machines and technologies, the absence of uniform product safety standards and the need for a single set of rules for product labeling and packaging in the EU.
The current situation leads to legal uncertainty, hinders innovation and creates problems for the deployment of workers across the EU. The Commission also highlights the issue of varying national recognition of academic degrees and certifications, as well as the complexity of short-term worker deployments and the disparate conditions for the licensing and certification of services, particularly in the health and security sectors.