Commission VP: Trade war with US would be ‘disastrous’ for world economy

Jyrki Katainen, vice president of the European Commission in charge of jobs, growth, investment and competitiveness | John Thys/AFP via Getty Images

Commission VP: Trade war with US would be ‘disastrous’ for world economy

‘If somebody is behaving against our interests or against international rules in trade then we have our own mechanisms to react,’ Jyrki Katainen said.

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The European Union is preparing for a legal challenge to a U.S. border tax proposal, the FT reported Monday.

European Commission Vice President Jyrki Katainen said a trade war between Europe and the United States would be “disastrous” for the world economy. But, he said: “If somebody is behaving against our interests or against international rules in trade then we have our own mechanisms to react.”

“We have all the legal arrangements within EU, but we are also part of global arrangements like the WTO and we want to respect the global rule base when it comes to trade.”

The administration of U.S. President Donald Trump has a highly protectionist agenda which European officials fear may affect transatlantic trade.

Authors:
Saim Saeed 

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