The European Union intends to adapt its trade policy to the rapidly changing geopolitical landscape, focusing on relations with America, but also taking into account the importance of engagement with China.
“Russia’s ongoing aggression against Ukraine is the main, but not the only, factor causing this recalibration,” European Commission (EC) Executive Vice President Valdis Dombrovskis said at a press conference on Friday following a meeting of EU trade ministers.
He noted that the European Union continues to provide the necessary support to Ukraine, “making every effort to further isolate Russia.”
He believes that the situation in Ukraine has set a new goal – focusing on transatlantic relations. “And we have made significant strides forward in recent months,” Dombrovskis said, referring to the results of the recent meeting of the EU-US Trade and Technology Council (TTC).
According to him, the main conclusion of the TTC was that the key is to remove trade barriers and prevent the emergence of new ones.
“We will also be looking at building more sustainable supply chains for semiconductors. The same goes for critical raw materials, where we are exploring the so-called “friend-shoring” concept,” the European official said.
Among other examples, he named the joint work with the Americans on the standard of chargers for electric vehicles.
Prospects for trade and investment relations between the EU and China, Dombrovskis said, should be viewed against the backdrop of both geopolitical shifts and new challenges to the global economic environment.
“In general, it is clear that the relationship between the EU and China is becoming more complex. But there was also a clear view that engagement with China is important,” he said.
Dombrovskis said the EU would be the strongest supporter of WTO reform. Its trade agreements with external partners should help diversify supply sources and create export opportunities.
“Accordingly, we must seek (within the EU) a new consensus on how to advance our bilateral partnership: it is clear business as usual is not an option,” he said.
