TRADE in ACTION|Building a transatlantic marketplace

June 2, 2017
This week in TradeinAction: The 43rd G7 Summit has come to an end and President Trump and leaders around the world left the summit with key unresolved differences on trade, climate change, and defense, especially after the United States has announced to withdraw from the Paris Agreement. Here are the 5 main takeaways you should know about. United States: Current chief Republican trade counsel for the Senate Finance Committee, Everett Eissenstat, will fill the deputy director slot on the council which was vacated by soon-to-be Ambassador to India, Kenneth Juster.
SPOTLIGHT
Deepening of the Economic and Monetary Union

 Following the European Commission’s release of its white paper on the future of Europe in March, it published a reflection paper on the deepening of the European economic and monetary union on May 30. The options proposed in the reflection paper are in line with the recent Atlantic Council publication “Charting the Future now- European Growth and its Importance to American Prosperity”.
TRADI IN action image june 2
No time for in-depth reading? Check out the “cheat sheets” for the Commission paper and for the Atlantic Council paper

TRADE
What Does the Paris Withdrawal Mean for Trade?
 
US President Donald Trump confirmed on Thursday he would withdraw from the Paris climate accord, which makes the United States the only nation not to sign onto the pact alongside Nicaragua and Syria. What implications could this have for US businesses and workers? 
Megan Cassella, Politico: "The withdrawal sets up the potential for other countries to use Trump's decision as reason not to cooperate with him on other negotiations, including trade - or to implement tariffs in retaliation.
Beyond simply refusing to negotiate, trading partners could also take steps to hit U.S. products with a so-called carbon tariff, a levy that would increase the cost of American goods in order to offset the fact that U.S. manufacturers could make products more cheaply because they would not have to abide by Paris climate goals."
Read more on what US Business leaders and CEOs say about the decision.

tweet of the week June 2
News: Exclusive: Wilbur Ross says he's 'open to resuming' Talks on Mega-Trade Deal with Europe, Lori Ann LoRacco, CNBC 
Remarks: US Trade Representative Robert Lighthizer at the U.S. Chamber of Commerce Gala Dinner, Office of the United States Trade Representative
News: European Union Details its Deeper Integration, Wants Common Finance Minister, and Bundled Euro Zone Debt, Silvia Amaro, CNBC
News: Dutch Senate Backs EU-Ukraine Trade Deal, Cynthia Kroet, Politico
Speech: Transparent EU Trade and Investment Policy, Cecilia Malmström, European Commission 
Analysis: What Parliament is Doing to Boost the Economy, European Parliament 
AnalysisCapital Markets Union Moves Forward in Europe, Barbara C. Matthews, New Atlanticist
Analysis: Why Trump is Attacking Germany Over Trade, Chris Isidore, CNNMoney
Paper: Surplus Germany, Wade Jocoby, Transatlantic Academy 
AnalysisTrump Talks Tough on Trade, but His Team Is Treading Lightly, Alan Rappeport, The New York Times
Opinion: The Fatal Flaws in Trump’s Economic Math, Ben White, Politico  
News: China Sees an Opening in Rift Between Trump and Germany, Alison Small and Jane Perlez, New York Times
Opinion: (TTIP): Don't Say Cheese, Gina Chon, Breakingviews, 
Analysis: An Investigation of the Root Causes of the Greek Crisis, Paul-Adrien Hyppolite, Voxeu

TWEET/FACTOID OF THE WEEK
Did You Know?
..that Germany bought $65 billion worth of American goods last year, more than any other European country other than the United Kingdom? Whereas the United States bought $120 billion worth of German goods during the same year. (Explainer, ABCNews)
Want to learn more? Germany’s Trade Surplus with U.S. is ‘Win-Win’ Situation: Economy Minister, Joseph Nasr, Reuters 
tweet of the week 2 June 2

GLOBALIZATION
Analysis: Gouging Globalization, Randolph Bruno, Nauro Campos, Saul Estrin, Voxeu
News: British PM May is Retreating from Globalization, George Osborne Says, Guy Faulconbridge, Reuters
News: EU Business Lobby Urges China to Walk the Talk on Free Trade, Globalization, Business Standard,
Analysis: Post-Globalization: Trade in a New Era of Protectionism, Colin Lloyd, Market Mogul
Critical Read: How Globalization Sunk Many Americans Deeper in Debt, Erik Loualiche, MarketWatch

WHAT WE ARE READING
News: Italy Moves Towards Early Vote as Election Deal Nears, Alessandra Migliaccio, Lorenzo Totaro, Bloomberg  
Opinion: What Angela Merkel Meant at the Munich Beer Hall, Mathew Karnitschnig, Politico
News: Italy PM Says Agrees that Europe Must take Its Fate into its own Hands, Steve Scherer and Antonella Cinelli, Reuters
Opinion: Trump, G7 Agree they Can’t Agree on Paris (For Now at Least), David M. Herszenhorn, Politico
Opinion: America First Doesn’t Mean America Alone,  H.R. McMaster and Gary D. Cohn, The Wall Street Journal 
Analysis: In the Age of Trump, Beijing Pivots to Europe, Stephan Faris, Charles Lee, Politico, 
Opinion: Why Vladimir Putin’s Russia Likes Seeing a Damaged German-American Alliance, Jacob Pramuk, CNBC
Analysis: Brexit and Systemic Risk, Jon Danielsson, Robert Macrae, Eva Micheler, Voxeu
Opinion: Trump and Europe, Trading Places, Mathew Kaminski, Politico
Graphic: Today’s Brexit Barometer, Bloomberg
Report: Millennials and the Future of Work, International Monetary Fund

UPCOMING
EVENTS
June 5: The Future of Mobility: A Fireside Chat with Bill Ford, Atlantic Council
June 6: Post-Populism or Post-Europe? What Recent Elections Mean for Europe, The Forum On International Affairs
June 6: Transatlantic Cooperation for Global Security: The 6th Annual Symposium on the EU's Common Security & Defense Policy, The European Union delegation to the USA
June 6: The Future of Europe: Liberalism Reinvented, BMW Center for German and European Studies
June 7: Energy Security in Central & Eastern Europe: New Challenges and Opportunities, Atlantic Council, Atlantic Council
June 7: Rethinking Transatlantic Links: Security and Economics, Center for Transatlantic Relations
June 8: Strengthening America’s Infrastructure: What Next? Hudson Institute
June 8: 2017 Intensive Trade Seminar,  The Institute for International Economic Policy 
June 28: The Ties That Bind: Promoting Transatlantic Trade and Investment, U.S. Chamber of Commerce


Your Newsletter Team:
Marie Kasperek, Associate Director, Global Business & Economics, Atlantic Council
Tom Driscoll, Intern, Global Business & Economics, Atlantic Council

Please send us suggested news stories, opinion pieces, publications, and upcoming events that you would like us to highlight! Email This email address is being protected from spambots. You need JavaScript enabled to view it. with your ideas and suggestions.
The views expressed in this newsletter and linked external articles and content do not necessarily reflect the opinions of the Atlantic Council, its staff, or its sponsors.

RELATED CONTENT