In view of the unpredictable customs policy of the American government under Donald Trump, economists see better opportunities for EU free trade agreements with other countries. This includes Gabriel Felbermayr, the chairman of the Austrian Institute for Economic Research (WIFO): “Europe can position itself as the place where you are contractual, where you confess to open markets,” said Felbermayr on the occasion of the annual press conference of the German Chamber of Commerce in Austria (DHK) in Vienna. Negotiations with India and Australia have also progressed. It often fails due to insignificant particular interests, said Felbermayr, who previously headed the Institute for the World Economy (IFW) in Kiel. The EU currently has 44 free trade agreements with 76 countries, from the perspective of the President of the DHK in Austria, Hans Dieter Pötsch, the Customs’ Point of Commerce must not have a negative impact on the trade relationships between the European Union (EU) and China. You have to “avoid an escalation spiral,” said Pötsch, who is also chairman of the supervisory board of Volkswagen AG and CEO of Porsche SE. “In the end we would all lose.” Pötsch described the EU’s procedure against Chinese electric car farmers as appropriate. Warnings before the European tariffs on Chinese electric cars initially had discussions with China and then imposed dilated duties per car maker due to the subsidized amounts. The VW supervisory board chairman was confident that the customs situation in Chinese electric cars could also go back to the lowering and that you can find reasonable solutions with the trading partner China. “This can lead to economic opportunities,” said Pötsch. Chinese carmakers have already announced that they are producing electric cars in Europe, for example in Hungary. Felbermayr also warned against isolating himself due to the US customs conflict of China. “A first customs can become a surface fire.” This is a bad strategy for Europe. Felbermayr does not expect a distinctive flood in Europe with Chinese products and referred to current simulations of the Kiel Institute for World Economy (IFW). According to the IFW, Germany is not at risk of importing Chinese goods due to the trade conflict. The fear of a flood of Chinese goods that have so far been exported to the United States and now mean additional competition for German and European exporters on the world market is therefore unfounded according to simulation calculations. If there are trading in some areas, the EU must proceed with absolute caution in tariffs on Chinese goods. “Less paper, more pragmatism” to strengthen the competitiveness of Germany and Austria, the President of the DHK, Hans Dieter Pötsch, demanded a noticeable bureaucracy. “We need a real deregulation offensive. Less paper, more pragmatism,” said Pötsch. In addition, the reduction in energy and labor costs also considers it necessary. Recently, Austria and Germany remain important trading partners for each other. In the case of exports, Austria is as important for Germany as Great Britain and Italy. According to the Statistics Authority of Destatis, Germany exported 77.2 billion euros to the southern neighboring country, but 5.7 percent less than in the previous year. More on the subject of Austria is still the eight -largest export partner (previously place 7) and the most nuclear import partner (previously also 7th place) in Germany. Investment goods such as machines and machine tools as well as chemical products were particularly affected by the delle. The automotive trade, on the other hand, was comparatively stable. According to the Chamber of Commerce, a total of 4,900 German companies are active in Austria. Conversely, 2,400 Austrian companies have a location in Germany.
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