Posted by Editors in
International Economics, Transatlantic Relations on Sunday, September 24. 2006
[UPDATE: The idea is not new. Already in 1997, Germany Foreign Minister Klaus Kinkel "proposed that a transatlantic free-trade zone, TAFTA, be created in the long term."]
"Spurred by concern about China's growing economic might, Germany is considering a plan for a free-trade zone between Europe and the US," writes the Financial Times (FT) in an article availabe at MSN Money:
A senior aide to Angela Merkel said the chancellor was "interested" in promoting the idea as long as such a zone did not create "a fortress" but rather "a tool" to encourage free trade globally, "which she is persuaded is a condition of Germany's future prosperity". Separately, on Friday, the US, Canada and the European Union complained to the World Trade Organisation about China's tariffs on car parts, raising the prospect of Beijing facing its first WTO dispute.
China's Prime Minister Wen Jiabao was on tour in Europe. Hopefully he was pressured on Darfur as well. Global Darfur Day was on Sunday and Jewels in the Jungle has a news round-up. Die Zeit's Kosmoblog criticizes a lack of attention for Darfur in Germany. The FT mentions only that Chancellor Merkel criticized China's poor human rights record and restrictions on foreign news agencies. [UPDATE: The Frankfurter Allgemeine Zeitung writes that Darfur was discussed and that Prime Minister said China supports UN troops in Darfur] The FT concludes:
As German perceptions of China have grown more American, Washington's approach has shifted too. Speaking before his first trip to Beijing, Hank Paulson, US Treasury secretary, this week outlined a more balanced policy mixing traditional US criticism with praise for China's reforms.
Prof. Drezner sees "many reasons to believe that TAFTA [Transatlantic Free-Trade Area] will never get off the ground", but finds the idea "very intriguing. Even if it takes ten years to negotiate, the combined weight of a TAFTA in terms of both market size and rule-setting behavior would be formidable." (HT: ROA) The FT advises caution:
Ms Merkel's aide said it was "far too early" to tell whether the project of a transatlantic free-trade zone would be part of Germany's priorities when it assumes the six-month presidency of the European Union and chairs the G8 group of leading industrial nations from January.
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A (new to me) German website, Atlantic Review, picks up on the idea of Germany being willing to push for a transatlantic free trade area. A woefully stupid idea. As we all know, unilateral free trade benefits the population of Comments ()
Tracked: Sep 20, 12:52
Gabor Steingart makes "an argument for a trans-atlantic free-trade zone" in the English version of Der Spiegel: The role NATO played in an age of military threat could be played by a trans-Atlantic free-trade zone in today's age of economic conf Comments ()
Tracked: Oct 22, 12:21