Reference Message Network reported on June 21 that the German Die Welt website published an article titled "Defending Free Trade" on June 19. The author is Greg Hands, former Parliamentary Under-Secretary of State for International Trade of the United Kingdom. The following are excerpts from the article: In February 2020, I met with Robert Lighthizer, the U.S. trade representative during Trump's first term, at a restaurant in London. At the very beginning of our trade agreement negotiations, he clearly stated: "I am not a free trader." Now I realize that this statement was just a harbinger of a series of policy shifts in Washington. After Trump started his second term, he constantly went back on his word and increasingly destabilized international trade policies. Against this backdrop, Europe must safeguard its strategic interests. At the same time, I firmly believe that defending free trade is an unavoidable option for Europe. History tells us that tariffs do not create prosperity; instead, they destroy it. In 1930, the U.S. began implementing comprehensive tariff plans by enacting the Smoot-Hawley Tariff Act, and as a result, imports and exports in the U.S. fell by two-thirds within just a few years. The consequences were severe: the Great Depression. Today, the U.S. imposes an additional 10% tariff on all imports from the EU. The auto tariff is 25%, and the steel and aluminum tariffs are as high as 50%. These tariffs have dealt a heavy blow to key European industries. Under the pressure of Trump's unpredictable tariff policies, more and more European companies are trying to quickly ship their goods to the U.S. The volume of shipments has set records, causing warehouses in the U.S. to overflow. All this has caused inefficiency, additional costs, and wealth losses. Europe not only has the right but also the obligation to respond to other countries' tariff and subsidy policies. However, we should avoid escalating into a trade war. Because in the end, it will harm everyone's interests. So what should be done? While the U.S. restricts free trade, Europe should double its efforts to reach new free trade agreements. The trade agreement between the EU and Mercosur member countries is an important step. Brazilian President Lula's visit to France indicated that this is the best response to the uncertain situation caused by returning to unilateralism and tariff protectionism. He is correct. Additionally, joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is particularly important for the EU. Moreover, Europe should continue to advocate for free trade at the World Trade Organization level. If the world trading system is declared dead too early, it may become a self-fulfilling prophecy. Europe should not contribute to this. Most importantly, we should not fall into the mindset trap of believing that the path to protectionism and tariff barriers is irreversible. The term of the U.S. president is only four years. I believe the prospects of the forces supporting him are far from certain. The current impression is that might makes right will become the sole decisive principle in the future – including in the field of world trade. We should oppose this view. The world will not completely split into trade blocs. More importantly: Europe is not the only force hoping to defend and further promote global free trade. We are strong, and we have allies – we should leverage these two points. (Translated by Song Yuhao) Original source: https://www.toutiao.com/article/7518214129153409547/ Disclaimer: The article represents the views of the author alone. Please express your opinions by clicking the "Agree/Disagree" buttons below.