The EU has taken a significant step towards resetting its trade relationship with countries affected by Donald Trump's protectionist policies, particularly in Asia.
In a bid to counter the US president's reliance on tariffs as an economic and political tool, the European Commission has been engaging in strategic trade deals that prioritize mutual benefit over submission. The recent agreement with India is seen as a major coup, offering unprecedented access for EU goods in politically sensitive areas like vehicle imports, while also providing significant tariff reductions.
What sets this apart from the US approach under Trump, however, is Europe's willingness to let partner countries maintain their sovereignty and geopolitical room to maneuver. In contrast to the US, which has used trade as a means of signaling dominance and corroding trust, the EU is treating trade as a collaborative effort to share growth without demanding submission.
This new approach reflects a shift in European strategy, where Brussels is focusing on building "trade as architecture" β a way of organizing development paths across Asia. By encouraging industrial upgrading in Vietnam and tolerating selective protection in India, Europe is no longer limiting late developers into low-value roles. This move acknowledges that history, recognizing that countries that have grown through protectionism may not thrive solely through openness.
The EU's stance also resonates with the Canadian prime minister Mark Carney's argument about middle powers building resilience through interdependence without surrendering autonomy. By promoting trade in a way that balances mutual benefit and policy space, Europe is recognizing its own past mistakes, such as limiting development opportunities for poorer countries.
Ultimately, this new direction reflects a pragmatic approach to trade that prioritizes long-term growth over short-term gains. As the world continues to navigate the complexities of global trade, the EU's shift towards "trade as architecture" offers a valuable lesson in building resilience and promoting sustainable economic development.
In a bid to counter the US president's reliance on tariffs as an economic and political tool, the European Commission has been engaging in strategic trade deals that prioritize mutual benefit over submission. The recent agreement with India is seen as a major coup, offering unprecedented access for EU goods in politically sensitive areas like vehicle imports, while also providing significant tariff reductions.
What sets this apart from the US approach under Trump, however, is Europe's willingness to let partner countries maintain their sovereignty and geopolitical room to maneuver. In contrast to the US, which has used trade as a means of signaling dominance and corroding trust, the EU is treating trade as a collaborative effort to share growth without demanding submission.
This new approach reflects a shift in European strategy, where Brussels is focusing on building "trade as architecture" β a way of organizing development paths across Asia. By encouraging industrial upgrading in Vietnam and tolerating selective protection in India, Europe is no longer limiting late developers into low-value roles. This move acknowledges that history, recognizing that countries that have grown through protectionism may not thrive solely through openness.
The EU's stance also resonates with the Canadian prime minister Mark Carney's argument about middle powers building resilience through interdependence without surrendering autonomy. By promoting trade in a way that balances mutual benefit and policy space, Europe is recognizing its own past mistakes, such as limiting development opportunities for poorer countries.
Ultimately, this new direction reflects a pragmatic approach to trade that prioritizes long-term growth over short-term gains. As the world continues to navigate the complexities of global trade, the EU's shift towards "trade as architecture" offers a valuable lesson in building resilience and promoting sustainable economic development.