Thank you for your warm welcome and for hosting this important discussion.
Almost a year ago, I last visited Washington, D.C. Since 2022, when Russia invaded Ukraine, Ive been here every February, each time marking an important moment in our relationship.
This year, I am here to address a critical issue: the U.S. administrations proposal to impose tariffs on EU exports.
This has raised concerns about the state of our transatlantic partnership.
Last year, I quoted the American industrial pioneer, Henry Ford: “Coming together is a beginning, keeping together is progress, working together is success.” These words resonate even more strongly today.
The European Union is built on free trade among its members, and our commitment to global trade is deeply rooted in our DNA. It should therefore come as no surprise that the EU is the worlds largest trading bloc.
We have free trade agreements with 76 countries and are the leading trading partner for 72 nations, accounting for 38% of global GDP.
We know a thing or two about trade.
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The EU is also the United States most important trading partner. Over the past decade, EU-U.S. bilateral trade in goods and services has doubled, surpassing $1.7 trillion in 2023.
It is a unique bond that benefits both sides of the Atlantic. It is a win-win partnership.
Let me give you a few examples:
- Boeing and Airbus build civil aircraft in the U.S. with advanced electronics and systems from European companies.
- U.S. tanks and armored vehicles rely on EU technology.
- U.S. semiconductor production depends on EU-made lithography machines.
- Even the U.S. Mint uses EU-made machines for producing dollars.
The EU is also a massive market for American products.
For instance, 50% of our LNG imports come from the U.S., while Europe is your largest LNG export market.
In 2019, I had the privilege of joining President Trump at the opening of an LNG export terminal in Hackberry, Louisiana.
It is true that the EU enjoys a small trade surplus, but that is only 3% of our total bilateral trade.
The U.S. has a large trade surplus in services. Even a Tesla car is full of services. The EU imports twice as many digital services from the U.S. as from the entire Asia-Pacific region.
The deficits in goods and services nearly balance out. This reflects the natural structure of our economies.
It is simply a market-driven allocation of resources, and this is what well-functioning international trade is about - benefiting both parties.
When it comes to investments, the numbers are equally impressive.
EU foreign direct investment in the U.S. totals $2.8 trillion.
European companies are the largest foreign investors in the U.S., creating jobs and contributing to the American economy.
As Madeleine Albright called the U.S. the indispensable nation, one could argue that the EU and the U.S. share an indispensable partnership.
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Now, on to tariffs.
President Ronald Reagan said: “Were in the same boat with our trading partners. If one partner shoots a hole in the boat, does it make sense for the other one to shoot another hole?”
He advocated for free markets and fair trade.
We often hear claims that the EU imposes higher tariffs than the U.S. But the data tells a different story.
The EU is one of the most open economies in the world.
- The average EU duty on U.S. goods is 0.9%, while EU exports to the U.S. face an average tariff of 1.5%.
- For certain products, the level of duties varies, but tariff peaks exist on both sides.
- In some sectors, U.S. tariffs are higher.
Given these facts, the EU sees no justification for sudden, unilateral tariff increases by the U.S.
Our businesses rely on economic stability and predictability. If the U.S. imposes tariffs on EU products, it would create unnecessary barriers.
Therefore, to protect European interests, we will respond firmly and swiftly if necessary. But we hope to avoid that scenario and remain committed to constructive dialogue.
That is why I am here this week.
Paraphrasing Ronald Reagan: “Commerce is not warfare; it is an economic alliance.”
The EU remains convinced that free and fair trade is worth fighting for.
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First, competitiveness is front and center in these efforts.
We plan to increase production within the EU.
Second, trade remains at the core of our alliances.
We are expanding our network of trade agreements.
Third, our openness does not mean we will not protect our interests.
We have the Anti-Coercion Instrument to protect the EU.
We are also revising our Foreign Direct Investment screening regulation.
We are taking steps to prevent EU outbound investments from harming our economic security.
With all these steps, we are sending a clear signal to our industries.
And by the way, this signal is not only for EU businesses. Europe is open for American trade and investment.
I will make this point to my American counterparts when I meet them later today.
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To conclude, the transatlantic bond is the most natural for us.
I believe it makes sense for both the EU and the U.S. to work together to strengthen this relationship.
Lets continue to make our trade and investment relationship great.
Thank you.