For the EU, this year’s trade tension with the US compounds a deteriorating trade environment, according to analysts at ANZ.
Key Quotes
“The EU’s report on trade and investment barriers for 2017 noted that EU exporters faced a record number of barriers last year (396 versus 372 at end 2016). Most of those were with G20 members. The highest numbers were with Russia (36), China (25) and Indonesia (23). The EU faced 20 trade and investment barriers with the US.”
“Non-tariff measures amounted to 218 restrictions whilst tariffs and quotas amounted to 180. The EU reported that it faced an unprecedented rise in protectionism last year and that the cost of 47 (of the additional 67 barriers) that EU exporters experienced will potentially cost EUR23.1bn, or 1.2% of 2017 exports.”
“If the US were to impose tariffs on EU car imports in the future, that would have significant ramifications for EU exports and growth, in particular for Germany.”
“The uncertainty created by Brexit cannot be ignored either. German car exports to the UK were EUR26bn in 2017. If the UK and EU fail to reach agreement on Brexit, the default position is WTO tariffs, which are 10% on cars. The German and broader EU car industry, is facing unprecedented trade uncertainty.”
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