U.S.-Linnemann Trade Dispute: Linnemann Expresses Optimism for Reached Compacts
Busting Barriers: The Push for a Transatlantic Free Trade Agreement
Even in the thick of the trade tussle between the EU and the US, the General Secretary of CDU, Carsten Linnemann, remains optimistic about a free trade agreement between the two. With a combined populace of almost 800 million residents in democratic states on the line, it's imperative to "establish common standards globally, even against China," according to Linnemann in a conversation with the German Press Agency, before Chancellor Friedrich Merz (CDU) meets with U.S. President Donald Trump in Washington.
(Credit: Tobias Koch)
Current Negotiations
Recent movements in the trade negotiations demonstrate a concerted effort towards a reciprocal trade agreement:
- High-Level Talks: A meeting between Ambassador Jamieson Greer and European Trade Commissioner Maroš Šefčovič took place on June 5, 2025, opening the dialogue on ongoing negotiations, signaling a readiness to progress in trade discussions.
- EU's Deadline Commitment: The EU has pledged to meet the July 9 deal deadline, emphasizing its dedication to resolving trade issues and moving towards a free trade agreement.
Global Common Standards
The possible free trade agreement between the EU and the US could have a significant impact on global common standards, especially in relation to China:
- The Rule-Based Trading System: The EU is worried that a US-China agreement might challenge the rule-based trading system, potentially harming EU access to the Chinese market.
- Reciprocal Tariffs and Trade Diversion: Reciprocal tariffs imposed by the US might cause trade diversion, with countries without free trade agreements with the EU offering preferential access, complicating the global trade landscape further.
- Zero-Tariff Proposal: The EU's zero-tariff free trade agreement proposal could pave the way for other nations to consider similar agreements, potentially pushing global trade policies towards more liberalized standards.
Implications for China
The evolving EU-US trade negotiations present several ramifications for China:
- Managed Trade Strategies: Depending on the structure, a US-China agreement based on managed trade could either strengthen China's position in the global trading system or create new barriers.
- Competitive Pressure: If the EU and US manage to reduce tariffs and non-tariff barriers, this could amplify the competitive pressure on China to adopt more liberal trade policies to maintain its market access.
In conclusion, while the EU and US continue to engage in trade negotiations, the current trade disagreements have multiple implications for global trade standards and China's place in the global economy.
- The General Secretary of CDU, Carsten Linnemann, advocates for a transatlantic free trade agreement between the EU and the US, stating that it is essential to establish common standards globally, even against China, in the middle of the ongoing war-and-conflicts in trade policies and legislation.
- In the midst of current political negotiations, the EU's policy-and-legislation ambitions could have a significant impact on general news and global common standards, particularly in relation to China, as the EU's zero-tariff proposal could potentially push global trade policies towards more liberalized standards.
