US Argues Trade Barriers Amid EU-Imposed Tariffs on American Beef Exports - U.S. Counterpoints on Customs Dispute Regarding Beef Importation from EU
When things don't sit well with U.S. President Donald Trump, he's quick to label it as "Fake News." But what about his administration's claims during the ongoing trade dispute with the European Union (EU)? Let's delve into three assertions that have been put to the test:
Claim: EU was created to exploit the USA
The EU, according to President Trump, was established to "take the USA for a ride." But is this true?
The EU is a network of 27 nations that negotiate collectively, giving them a stronger presence compared to if they were negotiating separately on the world stage. If you compare their population, 450 million EU citizens face nearly 350 million U.S. residents. However, this doesn't mean the EU is "taking the USA for a ride."
The alliance's roots date back to the aftermath of World War II, when it was formed as a reaction to the devastation caused by the conflict. It was on March 25, 1957, that six countries - Germany, France, Italy, Belgium, Luxembourg, and the Netherlands - signed the Rome Treaties to establish the European Economic Community (EEC) and the European Atomic Energy Community (Euratom). The name "European Union" came into use with the Maastricht Treaty in 1993, which laid the groundwork for an economic and monetary union and fostered a common foreign and security policy.
Brussels dismissed Trump's allegation, stating that the EU is the world's largest free market - and a "blessing" for the United States. As a single, integrated market, the EU has facilitated trade, lowered costs for U.S. exporters, and harmonized standards and regulations across 27 nations, making U.S. investments in Europe very profitable.
Claim: It's nearly impossible to export U.S. cars to the EU
Trump contends that it is "almost impossible" to export U.S. cars to the EU. However, this may be an overstatement.
In terms of vehicle exports in 2023, Germany sent nearly 450,000 cars to the United States, while the U.S. exported a mere 136,000 cars back to Germany, according to the German Association of the Automotive Industry (VDA). The U.S. currently charges only 2.5% duty on European cars, while the EU levies 10% on American vehicles. The low sales of U.S. car brands in Europe, according to industry expert Stefan Bratzel from the Center of Automotive Management in Bergisch Gladbach, is more about consumer preferences. "That's the big problem for U.S. manufacturers," Bratzel explains. With the exception of Tesla, U.S. brands have yet to lay claim to significant market shares in Europe.
Industry expert Ferdinand Dudenhöffer describes American cars as "simply unsellable" in Europe due to their size and high fuel consumption. "You can't sell a car here with eight cylinders and 15 liters of consumption," explains Dudenhöffer, a sentiment that aligns with the reality in the European market.
Claim: Europe hates American beef
Trade Minister Howard Lutnick stated that Europe "hates" U.S. beef, claiming that EU beef is "weak" while U.S. beef is "beautiful."
The controversy over U.S. beef imports to the EU dates back to the 1980s, when the EC banned the import of beef treated with growth hormones due to health concerns. The ban has stoked controversy, with the U.S. viewing it as an unfair trade barrier. The WTO ruled in favor of the U.S., as the EU could not provide sufficient evidence to justify the ban on hormone-treated beef. However, the ban remains in place due to health precautionary measures. In 2009, a compromise was reached, allowing the import of hormone-free U.S. beef, and in 2019, the import quota for hormone-free American beef was increased to 45,000 tons.
The issues underlying the ongoing trade dispute between the EU and the U.S. are complex and rooted in both historical and current practices. It's essential to separate the emotions from the facts and engage in open discourse to promote fair and beneficial trade policies for all parties involved.
- The EU, a network of 27 countries, is not established to exploit the USA, as President Trump suggested, but rather as a reaction to the aftermath of World War II with the aim of fostering unity and creating a larger collective presence on the world stage.
- Contrary to President Trump's assertion, it is not impossible to export U.S. cars to the EU; however, low sales of U.S. car brands in Europe may be due to consumer preferences, as European consumers have shown a preference for smaller, more fuel-efficient vehicles.
- The EU's ban on beef treated with growth hormones has been a contentious issue between the two regions, with the U.S. viewing it as an unfair trade barrier. The WTO has ruled in favor of the U.S., yet the ban remains in place due to health precautionary measures, and a compromise was reached in 2009 to allow the import of hormone-free U.S. beef.
