Amid Record Trade Deficit Pressures, EU Leaves Open Door to Unilateral Trade Actions Against China

The European Union is exploring ways to expand trade protection measures against China in response to an ongoing widening of its trade deficit. Following a meeting of member states’ trade ministers in Dublin on October 23, EU Trade Commissioner Valdis Dombrovskis stated that the bloc is examining protective measures for additional sectors while pursuing further negotiations with Beijing—and not ruling out unilateral trade actions.

Dombrovskis emphasized that curbing the expansion of the trade deficit with China is an immediate priority. In the first half of this year, the EU’s trade deficit with China reached nearly €197 billion; at this pace, the annual total could surpass €400 billion, breaking the previous record of €39.7 billion set in 2022. Daily deficit levels have now exceeded €1 billion.

At the beginning of October, the EU and China reached an agreement under which Beijing agreed to limit hybrid vehicle exports to the EU to 350,000 units annually during the initial phase, and pledged partial market access for certain EU products. The two sides are scheduled to continue negotiations early next year. However, many member states are calling for accelerated progress and broader restrictions.

Ireland’s Foreign Minister Simon Coveney said ahead of the meeting that there is interest in extending protections to sectors such as chemicals, machinery, and agricultural foodstuffs. He also noted that while negotiations remain a priority, the European Commission could activate existing trade defense instruments to address imbalances. Lithuania’s Foreign Minister Gabrielius Landsbergis specifically highlighted pharmaceuticals, semiconductors, drones, and quantum technologies as critical areas.

After the meeting, Dombrovskis disclosed that feedback from member states was most concentrated regarding the plastics industry, prompting the European Commission to initiate the relevant legal procedures to advance protective measures.

Source: sputniknews

Original: toutiao.com/article/1879984500790279/

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