Paneuropa: Looming Trade War Causes Concern (Press Release)

Anti-free trade populism now showing feared impact – Europe must act with greater unity

The reaction of European politicians to US President Donald Trump’s tariff threats is causing concern: “The fight against free trade in Europe leads directly into a trade war,” warns Rainhard Kloucek, Secretary General of the Paneuropa Movement Austria.

Shortly after Trump’s announcement to impose import tariffs on steel and aluminium, an outcry came from governments across EU member states. Many politicians are now demanding a response from the European Union to the US actions. “A free trade agreement like TTIP would have prevented such things,” Kloucek reminds us, “but that is exactly what was ‘successfully’ fought against – ostensibly to avoid being taken advantage of by the USA – by an alliance of protectionists, populists, and NGOs.”

The free trade agreement between the EU and the USA was negotiated for years at the request of all EU states, but was put on ice in 2016 due to significant resistance in Europe, as well as the expected blockade by the new US administration. In the meantime, the EU has concluded agreements with Mexico, South Korea, and Canada. Negotiations are ongoing with South America (Mercosur) and Japan (JEFTA). These very states are now also affected by the measures of the Trump administration.

The EU can demonstrate strength here alongside its treaty partners. “Free trade is the foundation of prosperity in Europe. Not only through the European Single Market, but also in global trade, the reduction of trade barriers has enabled small and medium-sized exporting companies in particular to be successful and create jobs,” emphasises Stefan Haböck, International Officer of the Paneuropa Movement Austria.

The Paneuropa Movement, which clearly commits itself to free trade and the European Union’s important free trade agreements, recalls that some Austrian politicians also cheered when US President Trump won the election with an “America first” campaign. Even then, warnings were issued that closing off one’s own markets and protectionism lead to trade wars that cause damage to SME-based economies, such as the Austrian one.

“Calling on the EU now – after the blockade of TTIP – to take action is interesting. Above all, the attitude towards free trade and a globally networked economy must be put to the test in Austria. Attacking the EU’s competence in trade matters out of populism, pressure from non-European NGOs, or ahead of upcoming elections is certainly not a forward-looking strategy,” conclude Rainhard Kloucek and Stefan Haböck.