Expert reveals what EU should have done to get a favourable deal with the US
The European Commission's former director for international affairs has roundly criticised the trade deal agreed by the EU with the US, describing it as "disappointing for both sides".
Speaking to Pat Kenny on Newstalk, John Clarke said the deal would reduce trade, make business more expensive and increase prices for consumers.
The EU has accepted a 15 per cent tariff on European goods, including pharmaceuticals and semiconductors, and has agreed to buy $750bn worth of US oil, LNG and other energy products and $600bn worth of American military equipment.
Asked if the EU could have achieved a better deal with a different negotiating stance, Clarke was adamant that Brussels should have followed Canada and China's lead in applying retaliatory tariff measures back in March or April.
He said the EU could have also restricted certain US services, intellectual property, and shut American firms out of procurement.
"It didn't do that, it blinked, and Trump, I think, saw quickly the EU's weakness, not aided of course by the fact that member states of the EU were quite divided on whether to be tough on the US or follow a track of appeasement," he said.
"They chose the latter in the end, and the commission had its hands tied."
Clarke went on to say that the only language Trump understands is "brute power and to push back very, very hard", as he believes the EU has done in the past, but the trade deal has seen the bloc lose credibility.
"This deal is being seen as kowtowing to illegal bullying tactics, and I think this is a dark day for the EU and the common commercial policy, which has been the jewel in the crown of the EU for the last 50 years."
It remains to be seen if higher tariffs on aluminium, steel and copper remain in place, and the EU has expressed hope of negotiating duty-free quotas on steel and aluminium as well as cars.
Ursula von der Leyen and Donald Trump. (Pic: Andrew Harnik/Getty Images)
The 15 per cent tariffs on the €44bn worth of annual Irish pharma exports are "not very good news" for the Irish pharma industry, said Clarke,
Clarke posited that Trump wants to pay for corporate tax cuts and prevent the emergence of China as a superpower with the tariffs, which he said was "futile" and would cause the American economy to "suffer".
(Pic: Andrew Harnik/Getty Images)
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