A leading economist has assessed the recently concluded trade agreement between the European Union and the United States as pragmatically understandable but ultimately disadvantageous for Europe. In a commentary published in the Handelsblatt, Jens Südekum, a senior advisor to the German Finance Minister, Lars Klingbeil, stated that the accord falls short of what constitutes a fair arrangement.
Südekum highlighted the frustration stemming from the fact that trade imbalances, previously exacerbated under the Trump administration, are not necessarily beneficial to the EU when accounting for services and capital flows. He acknowledged criticisms arising from several EU member states, where the agreement is being described as a form of self-diminishment or even a blow to free global trade. While he considers these reactions to be somewhat excessive, Südekum also noted a perceived inability on the part of Europe to effectively counter Washington’s assertive trade policies.
He conceded that the EU has averted a potentially worse outcome with this deal, but underscored that Europe will now be subject to increased tariffs, while the United States stands to gain a clear economic advantage.
Despite the current state of the agreement, Südekum believes there remains room for maneuver. He suggested that Brussels could leverage the list of products for which the US intends to waive tariffs to gain negotiating leverage in future discussions, potentially transforming the existing framework into a more substantial trade deal.