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Costa: It's not the right time to mess up with EU-US Trade

Costa: It's not the right time to mess up with EU-US Trade

John Irish

KANANASKIS (Alberta), June 15, 2015 - Instead of creating economic insecurity through trade tensions between the United States and Europe, the European Union's President Antonio Costa stated on Sunday.

Costa, speaking to reporters alongside European Commission President Ursula von der Leyen before a G7 gathering in the Canadian Rockies was a chance to discuss "some problems" among allies and friends.

Costa, in response to Washington's shift of its foreign policy away from China, said that the main issue between Europe, and the United States, is European defence. We should concentrate on this.

"Since this is the primary issue, we should avoid introducing any other issues that would undermine our ability to take greater responsibility for our own defense."

U.S. president Donald Trump has backed down from his threat of imposing 50% tariffs on imported goods from the European Union (EU) next month. He restored a deadline of July 9 to allow talks between Washington, and the 27-nation group to produce an agreement.

Trump's haphazard levying of tariffs around the world has caused uncertainty among U.S. key allies and increased pressure on the global economic system.

Von der Leyen, who spoke alongside Costa, said that the trade negotiations with Washington are now focusing on the details but there is no guarantee of a successful deal.

"This is why it's not the right time to create economic uncertainty." Costa stated that it is not the time to cause problems in trade because we must strengthen our economic base.

"We're talking about some of the most important trade relations in the entire world. We need to protect them and concentrate on the most crucial thing, which is a good agreement on burden sharing between the EU and United States on defense."

Von der Leyen echoed Costa's remarks, saying that the G7 must avoid protectionism.

This is a very important message. She said that the G7 could send a message to the markets, and the rest of the world. (Reporting and editing by Shri Navaratnam).

(source: Reuters)