EU - U.S.: “NO PROTECTIONISM”. OBAMA GIVES HIS WORD BUT TWO COMMERCIAL BATTLE FRONTS COULD STILL BE STEEL AND AGRICULTURAL SUBSIDIES

The European Commission has put down its arms for now and is not taking recourse with the World Trade Organization (WTO), after American president Barack Obama reassured the world stating that the U.S., “cannot send a protectionist message to the world” in response to the economic rescue package that was recently passed in the U.S. and which initially seemed heavily “buy American”.

“I am encouraged” – commented the EU Trade Commissioner, Catherine Ashton – “by the words of President Obama. The American president has recognized that, for many countries, the economic package contains clauses that could provoke the boycotting of non-American products”.

The words of President Obama also reassured Italy’s Undersecretary of Foreign Trade, Adolfo Urso, who noted that there is now chance for hope on America’s decisions made in regards to the “buy American” mentality.

There are two sectors, however, that must be watched closely and that could still become a commercial battleground between the EU and the U.S.: steel and agriculture. The Farm Bill, which guarantees subsidies for American agriculture is still under close scrutiny by the European Commission. In fact, after the 2009-2010 plans for aid was picked through carefully by the EU Agriculture Commissioner, Mariann Fischer Boel, it was concluded that, “American policy seems to move towards increased support which could create distortions in trade”.