European shipowners, represented by the ECSA, expressed their concerns about recent developments on global trade relations. The concerns are raised after the US implemented tariffs on EU, Mexico and Canada, while the result of the G7 meeting last weekend did not offer a solution.
European shipowners remind that open trade relations based on transparent rules and procedures are vital for the world trade and world economic growth and prosperity.
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ECSA said:
Any unilateral measures appearing to show benefits at the short term will in the longer term prove to be counterproductive for all. Imbalances in trade relations have to be taken care of by sound economic policy measures, not by taking short sighted measures not addressing real possibilities for improvements.
European shipowners also said that despite the fact that they understand the need for Europe to react, they urge all stakeholders tomake sure that world trade remains the driver for economic prosperity.
The US decided to impose tariffs on steel and aluminium imports from its key allies in Europe and North America. Namely, the US will establish a 25% tax on steel and 10% tax on aluminium from the EU, Mexico and Canada.
After that, the EU stroke back, as it submitted eight pages at the World Trade Organization (WTO), setting out 25% tariff increases for the US regarding steel and aluminum.
Mexico has also responded to the US tariffs. Namely, it will impose 15% to 25% tariffs on US steel and some agricultural goods. The tariffs also include a 20% tariff on US pork imports, apples and potatoes and 20 to 25% rates on types of cheeses and bourbon.
From its part, Canada will impose retaliatory tariffs on £9.6 billion worth of US exports and challenge US steel and aluminium tariffs under the North American Free Trade Agreement and the World Trade Organization. The Canadian tariffs will enter into force from July 1 and will last until the US lifts its own measures.
Namely, Canada released two lists of US products, imposing a 25% tariff on the first list and 10% on the second. The tariffs are now subject to a consultation period, when Canadians will give their consults.
