Slovakia's first reaction: several agreements, Trump's Car Duty will be a disaster for World Trade

US President Donald Trump has announced that the United States will impose 25% import duties on cars from the European Union. His statement came just a few hours after The Wall Street Journal reported that, according to US Trade Secretary Wilbur Ross, the report on planned car import charges would later be known than in August, which was originally planned. This step would be most touched by Volkswagen and Jaguar Land Rover. Other car manufacturers do not export cars to the US.

The Ministry of Economic Affairs is ready to act

The Ministry of Economic Affairs talks about surprising information that is not consistent with the results of a meeting with Juncker. "This information is surprising and contrary to the outcome of the summer meeting of EC President Jean-Claude Juncker with US President Donald Trump, but every reaction is premature, information is only known from the media and without specific details. the EC, which is responsible for trade policy and has already announced that the EU will react strongly, " Topos spokeswoman for the Ministry of Economic Affairs, Maros Stano.

Peter Žiga

Source: SITA / Diana Černáková

Unfortunate measure

According to the Minister of Economic Affairs, Petr Zigu, the introduction of tariffs would be an unfortunate measure of the American government. If it really happened to him. Ziga said it after Wednesday's cabinet meeting in response to statements by US President Donald Trump. "If so, then it is not a good report for world trade, not only for the European, but also for the American, because I expect the EU to take retaliatory measures," Said Ziga. He thinks that this spiral will not bring anything positive. "I quite understand what was agreed to make the tasks zero," Ziga pointed out.

Peter Žiga

Source: TASR – Martin Baumann

President Trump's current claims are only seen as statements in the pre-election campaign. The official position of the American government is not yet. "So we will only speak if it comes as an official position and we will speak with other EU countries" explained the Minister of Economy. In his words, business is a common agenda for the EU. At the same time, we would like to discuss the Slovak positions with our most important business partners such as Germany or France. He announced that he would travel to Germany next week

Bad news for world trade

As in the past, the EU countries will go together and more coordinated than individually. "However, these measures are a bad report for world trade and another contribution to an unnecessary spiral of safeguards." For countries like Germany and Slovakia, the automotive industry is a strategic part of the economy and therefore our opinions are likely to be close. Under the Slovak Presidency, the Ministry of Economic Affairs, together with German colleague Petr Altmaier, is also preparing for this subject in the autumn, the spokesman wrote.

US President Donald Trump

Source: TASR / AP Photo / Evan Vucci

The Ministry of Economy closely monitors the situation and communicates closely with the car manufacturers and the Automotive Industry Union. "A recent estimate by the Treasury has had only a minimal impact on the Slovak economy so far, and the expected impact on Slovakia's economic growth is between 0.05 percent and 0.12 percent of GDP," Stano added.

The measures are very harmful

According to the Deputy Chairman of the SPOLU and the economist Jozef Mihal, the impact of the introduction of tariffs on Slovakia will be minimal, but the measures are pretty damaging. "Only a fraction of the production of cars produced in Slovakia travels to the US (SUV from the VW group), so the direct impact of the introduction of these tariffs on Slovakia will be minimal (possibly a secondary impact sooner). then a negative impact on the German economy for example) said Topky Mihál.

Slovakia's first reaction: agreements

Source: SITA / Radoslav Maťaš

"However, these measures will in general have very serious negative effects on trade and politics, which is why they are very harmful, and it is only possible to reach a solution at EU level which has its instruments and strength in trade policy. reach a reasonable agreement with the US " the politician added.

The trumpet's step was without anger

& # 39; Protectionism has never been successful in a country. Instead of improving Trump's business environment, Trump resorted to primitive conservation measures. In the medium and long term, the US team will be injured, " said Richard Sulík for Topky. The Committee on Freedom and Solidarity considers it irresistible if the 25 percent import duties on EU cars are learned by the largest trading partner of the US through a meeting between the US president and his supporters in West Virginia.

Slovakia's first reaction: agreements

Source: SITA / Diana Černáková

It has the most impact on the Volkswagen and the Jaguar Land Rover

"We do not consider such a way of communicating and we will not consider good allies and friends," noted the deputy from the National Council and the SaS foreign policy team and the Martin Klus political system. He also said that this step would cause problems with Volkswagen in Bratislava, which exports every fifth car to the US and in the near future also the Jaguar Land Rover. "Moreover, it is worth noting that the ratio of car exports to the US and GDP of Slovakia is significantly higher than that of any EU country, and therefore will have a negative impact on the Slovak economy."

Donald Trump

Source: SITA / Craig Hudson / Charleston Gazette-mail via AP

The SaS called on the Slovakian Ministry of Economy to immediately initiate a solution to this problem within the EU. "It is necessary for the US party to strongly emphasize that this kind of trade weakens the global position of both partners, which someone else can enjoy" Job added. Most likely these rates will affect Jaguar Land Rover and Volkswagen. The problem may also be the starting car manufacturer at Nitra Jaguar Land Rover. She also plans to sell part of her car to the US. The other two car manufacturers are not allowed to directly touch this measure because they do not export their cars to the US market.

Volkswagen has exported nearly 20% of the cars to the US

According to last year's statistics, Volkswagen Slovakia exported 99.7 percent of cars produced from Slovakia. The largest export markets for sales were Germany, China and the US, where they exported 20% of the cars. For 2017, the Bratislava plant produced more than 360,000 motor vehicles. Overall, about 72,000 cars were on their way to the US last year.

Slovakia's first reaction: agreements

Source: SITA / AP / AP Photo / Michael Sohn

"Volkswagen Slovakia as part of the Volkswagen group is free and fair trade and cooperation between partnerships as the basis for the well-being, employment and sustainable growth of all stakeholders Experience shows that unilateral protectionism has benefited no one for long. free and fair trade can ensure the development of well-being The automotive industry with long-term investments, production and product cycles will depend on reliable international framework conditions, " said VW spokesman Michal Ambrovič.

Kia cars do not have a significant impact on Dušan Dvořák. "Given that Kia Motors Slovakia does not sell cars to the US, we should not be directly affected by the introduction of US import duties on cars." said Dvorak of Kia Motors Slovakia. However, the possible introduction of customs duties will affect European exporters and the whole car industry, which could also have an impact on the European market situation.

Enriched song by Trump

US President Donald Trump announced import tariffs for European car manufacturers just hours after Wilbur Ross, Business Secretary, announced the postponement of the publication of a comprehensive report on the impact of import tariffs on the automotive industry. "Trump confirms his unpredictability and returns to the old, enriched song, it is clear that his economic plans do not need support in the analysis, and their goal is to pursue political points," said Topky Jakub Rosa, an analyst at Across Private Investments.

On average, the EU is protected by something more than the US. "However, this average conceals remarkable differences, for example, the EU taxes 10% of cars, while the US is only 2.5% .The opposite ratio is, for example, in deliveries and train wagons, which create room for endless conflict. The goal should be round-table discussion to negotiate favorable conditions for stakeholders, " Rosa said that Trump, on the contrary, withdraws from bilateral agreements and tries to protect the economy with import duties, which makes no sense from an economic point of view.

"Liberalization of world trade is a key priority for Slovakia, given the openness of our pro-export economy Negative direct effects on the Slovak economy, despite the fact that the ratio between car transport and the US to GDP is the largest of all EU countries, should not have been remarkable, " explains Rosa. "According to the Financial Policy Institute's analysis, it should reach 0.11% of GDP, which is nominally EUR 93 million, but much more could have an indirect impact on us, through the major trading partners, since most Slovakian exports, to three-quarters, to EU countries, especially through Germany, which would suffer the most from reduced business activity with the US, " he added.

Source link

Leave a Reply