EU rejects US trade probe allegations of market overcapacity
Source: msn/Bloomberg
8h
(Bloomberg) -- The European Union rebuffed US allegations that it’s contributing to global market overcapacity, and vowed to respond “firmly and proportionally” if Washington imposes tariffs that breach a trade deal with the bloc. “The sources of such overcapacity are well identified, and they do not lie in Europe,” said Olof Gill, a spokesperson for the European Commission, the EU’s executive arm.
The commission’s comments come hours after the US launched a probe into major trading partners, including the EU and China. Washington’s goal is to replace President Donald Trump’s global tariff regime, which the US Supreme Court struck down last month.
The investigations, which typically take months to complete, target more than a dozen major economies, alleging that they are unfairly overproducing goods. The probes are being conducted under Section 301 of the Trade Act.
The US move is complicating the European Parliament’s efforts to ratify the bloc’s trade deal with Washington. The pact was reached last July but never fully implemented, and EU lawmakers say they want more clarity on how Washington will preserve the 15% ceiling on most EU products agreed to last summer. US officials have said they are committed to preserving that rate, but it’s still unclear how the investigations would achieve that.
Read more: https://www.msn.com/en-us/money/markets/eu-rejects-us-trade-probe-allegations-of-market-overcapacity/ar-AA1Yt8oF
REFERENCE - https://www.democraticunderground.com/10143630870