By John Q. Hosedrinker 
The European Commission President floated a plan for the EU and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to form a new global trade initiative. This initiative would overhaul the rules-based global trading order, potentially supplanting the World Trade Organization, with the United States not guaranteed an invitation. The proposal aims to demonstrate the viability of free trade among a large group of countries based on a strong foundation of rules. The President also noted that the U.S. left a certain point.
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EU leaders trying to out-bully Trump is certainly a loaded headline, isn’t it? It’s easy to see why the chosen phrase might rub people the wrong way. After all, isn’t the real story about countries reacting to a situation, rather than engaging in some kind of playground power struggle? It’s hard to call it bullying when you’re simply choosing to forge your own path after being rejected. It’s like that classic scenario – the ex who’s furious you’re seeing someone else. But let’s dive into what’s really happening here, moving beyond the catchy headline.
Essentially, the EU seems to be exploring a world trade club – a new trading arrangement, the CPTPP, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, without the U.S. involved. This is primarily in response to the former President’s policies, particularly his penchant for tariffs and his overall approach to international trade. Many feel that he didn’t understand that tariffs aren’t simply “taxes” paid by other countries to the US. So when he, in essence, rejected existing trade norms, other nations are responding.
Now, the CPTPP is quite a significant deal, encompassing countries like Australia, Canada, Japan, and the UK, to name a few. The fact that these nations are moving forward without the U.S. shows a clear desire to maintain and foster global trade. While Trump has publicly stated that other countries are “cheating” the US, he actually drove those same countries to form their own trade partnerships. It does seem ironic, doesn’t it, that his actions are potentially isolating the US on the world stage.
The US’s place in the global economy seems to be changing, and not necessarily in a favorable direction. There are whispers of innovation elsewhere, especially with countries like China pushing technological boundaries. If the EU, for instance, decides to limit their dealings with the US, the economic impact could be significant. Plus, with relationships with its neighbors, like Canada and Mexico, seemingly strained, the US might find itself in a challenging position.
From a negotiating standpoint, it feels like the EU is in a strong position. They are not obligated to negotiate on the former US President’s terms, and can prioritize their own interests. Essentially, they are free to establish their own trade deals, even outside the U.S. umbrella. The ability to establish this trade bloc, without the US, really does create leverage.
The fact that China is also looking to join the CPTPP shows the deal’s growing appeal and importance. The EU’s strategy here seems pretty straightforward: establish beneficial trade agreements. And if the US wants in later, well, that’s up to them. The US cannot expect other nations to commit to deals with the former President, knowing how quickly he’s likely to reverse course.
The US dollar’s value in comparison to the euro has been decreasing. Some people are pointing to this shift as evidence of the US’s fading economic dominance. It’s a natural progression, and in trade disputes, the EU is in a strong position. While one might question the long-term consequences of these actions, the current trend seems to indicate a changing world order.
It is worth noting that there will always be counterarguments. Some worry about the potential for trade imbalances or the complexities of dealing with different economic systems. It’s true that the EU has protectionist elements within its own policies. But overall, the focus is on self-determination and strategic trade partnerships.
It all comes down to this: The EU is pursuing its own trade objectives, and the U.S., under certain leadership, is not currently part of that vision. It’s less about bullying and more about the evolution of global trade dynamics. The EU is clearly stating, “We’re tired of explaining our perspective” and now they are forming their own alliances. The US is being left in the dust.