The Canada Brief

Economy · 19 d ago

Europa building, Brussels

Olnnu · CC BY-SA 3.0 · Wikimedia Commons

EU leaders weigh new trade tools against China

EU trade deficit with China last year

360 billion euros

European leaders met in Brussels on Thursday to discuss the EU's trade imbalance with China, which rose to 360 billion euros last year.

A recent deal with Beijing limits imports of Chinese hybrid cars to 350,000 vehicles a year, but most leaders consider the results of dialogue so far insufficient.

Tools on the table

  • A diversification instrument
  • A solidarity fund against reprisals
  • A fast response to economic pressure

A draft of the summit's conclusions invites the European Commission to strengthen its trade toolbox, which already plans a diversification instrument and a solidarity fund in December.

France and Germany

Faster response tools

Spain

Dialogue with Beijing

France and Germany have proposed faster ways to answer economic pressure, while Spain remains the main supporter of dialogue with Beijing.