Six of one is not tight

Six of one is not tight

Opening today at the Quebec summit of the “group of seven” (G7) may be completed without signing the General Declaration. The crisis within the informal network has erupted on the background of escalating trade wars and a number of serious foreign policy differences between the US and other Western countries. German Chancellor Angela Merkel said that he expects the summit “problematic discussion”. And the President of France Emmanuel macron, for the first time used the term “six”, warning that the United States can be isolated.

On the eve of the G7 summits the Western media most often write about the threat of clashes between police and anti-globalization, which according to tradition, besieged the meeting place of the leaders of Britain, Germany, Italy, Canada, USA, France and Japan. This time, however, where journalists pay more attention to problems within this informal club.

How serious are disagreements, demonstrates the fact that the summit for the first time can complete without making the traditional General statements reflecting the consolidated position of its members on current international issues.

On the eve of departure to Canada, the leaders of France and Germany made it clear that they would not “compromise for the sake of” subscribe to “empty” document.

To enter the agreed positions on a number of sensitive foreign policy issues will not be easy. So, none of the G7 countries did not support the U.S. decision to exit Iran nuclear deal and transfer the American Embassy from tel Aviv to Jerusalem.

But the most fierce discussion among members of the G7 are now in the trading field.

Recall that the escalation of disputes led to the decision to enter the United States from 1 June tariffs on imports of steel and aluminium (25% and 10% respectively) of the EU States, Canada and Mexico.

After the increase, the US authorities duties in March, the suppliers from these countries got a reprieve — Washington hoped to negotiate additional concessions during the negotiations in return for permanent freezing of tariffs. However, Brussels called the American duties “illegal measure to protect the market”, and U.S. negotiations with Canada and Mexico in the framework of renewal of agreement North American free trade zone was delayed.

In the end, on Wednesday, the European Commission (EC) announced the approval of a decision to impose retaliatory tariffs on American goods since 1 July.

“This is a proportionate response to unilateral US actions”, — said the Vice-President of the EC Maros Sefcovic. We will remind, in the list includes various types of food (whiskey, orange juice, peanut butter, cranberry, etc.), metal products and motorcycles, involving a total import of €2.8 billion ($3.4 billion).

Previously the EC has already sent this list to the world trade organization (WTO) as a preventative measure in case of increase of duties of the United States. Total damage from the us protective measures in Brussels is estimated at €6.4 billion, however, the second part of the response constraints (for €3.6 billion) will be entered three years later (this is required by WTO rules), or after the decision of the panel of arbitrators of the WTO on the claim submitted to the EU and US.

A similar suit filed by the authorities in Canada, the main exporter of steel in the United States. Ottawa has promised to enter a response to the $12.8 billion it is Expected that they will also affect the supply of whisky, juice, steel, aluminum and other products. In Mexico on Tuesday has announced the return duties, mainly to food, that is proportional to the export of the country’s steel and aluminium (us$2.9 billion in 2017). In Washington, on the background of published measures expressed the desire to conduct bilateral negotiations separately with each country. We will remind, the volume of U.S. trade deficit with Mexico ($71,1 billion in 2017) is second only to the index, with China ($375,2 billion), while European countries with a large imbalance in the supply by Germany ($64,3 billion).

Chief economic Advisor, Donald trump, Larry Kudlow on Thursday told reporters that the White house is willing to discuss disagreements, but “going to stand my ground”.

Earlier, representatives of the US administration explained the need for the imposition of duties by the need to protect American manufacturers and concern about national security.

German Chancellor Angela Merkel on the eve of departure to Canada said that the discussion of the contradictions can be “problematic”. The Prime Minister of Canada Justin Trudeau on Thursday described the U.S. argument as “ridiculous”. “How can Canada and France pose a threat to U.S. national security? We are one of the best allies that ever was in the United States,” he said after talks with French President Emmanuel Macron.

The latter made all the tougher. For the first time used the term “six”, Mr macron warned that the United States can be isolated.

He cautioned Donald trump from such a path: “the United States is a powerful economic power, but if they went in the direction of isolationism, hard hegemony and removal of their own history and values, it would be bad for the US, for American citizens and for the international image of the country. I think the President trump knows that.” Emmanuel macron said about the inadmissibility of a trade war between the allies and stressed that it will suffer including the American company.

The same warning and in the United States. According to estimates of the Business Roundtable, an Association of 200 Executive Directors of major American companies, because of trade wars with the EU and other countries for every new job in the steel industry the United States will have up to 18 cuts in other sectors. The greatest loss may be incurred by the States, where the strong position of the party of Donald trump, Republican — Michigan, Ohio, Pennsylvania and Wisconsin. In this regard, entrepreneurs are hoping that, not wishing to lose voters ahead of the November Congressional elections, the President will reconsider its rigid policy of protectionism.

Justin Trudeau, Emmanuel Macron press conference interrupted by Canada’s Sergeant-at-Arms

— (@globalnews) 7 Jun 2018

Program Director of the Valdai club by Andrey sushentsov believes that the compromise in the interest of all the G7 countries. “The members of this club are now actively experimenting and searching myself, but the summit is unlikely to become a landmark and a turning point — he said “Kommersant”.— G7 but plays more of a symbolic nature in world politics, but remains one of the markers of Western solidarity. I do not think that the members of this club are now ready to bury him”.

Elena Chernenko, Tatiana Edovina