The recent events of the Russian invasion of Ukraine, competition with China, and the ongoing COVID-19 pandemic have had profound impacts on international trade relations. These challenges have highlighted the need for strengthened transatlantic ties to address the issues facing the global economy. Against this backdrop, the American Enterprise Institute (AEI) recently hosted a conversation with Valdis Dombrovskis, the Executive Vice President of the European Commission for An Economy that Works for People and European Commissioner for Trade. The conversation focused on trade policy, industrial policy, and transatlantic cooperation.
Russian Invasion, Chinese Competition, and COVID-19 Shake International Trade Relations
The Impact of Global Challenges on Trade Relations During the conversation, Dombrovskis discussed how the global challenges of the Russian invasion of Ukraine, competition with China, and the ongoing COVID-19 pandemic have shaken international trade relations to the core. These challenges have highlighted the importance of strong transatlantic ties and cooperation in addressing the issues facing the global economy.
Combating Climate Change and Industrial Policy Reshape Global Economic Activity
Reshaping Global Economic Activity through Climate Change and Industrial Policy In addition to these challenges, Dombrovskis emphasized the need to combat climate change and the return of large-scale industrial policy in the US and Europe’s accelerated energy transition, which have the potential to significantly reshape patterns of global economic activity. He noted that the US and the EU are both committed to addressing climate change and promoting sustainable economic growth, which presents opportunities for collaboration.
However, Dombrovskis also acknowledged the need for both regions to address the issue of industrial policy. He noted that the US has recently adopted a more interventionist approach to industrial policy, which has been met with skepticism in some quarters. At the same time, the EU has taken steps to strengthen its own industrial policy, which has also faced criticism.
Despite these challenges, Dombrovskis expressed optimism about the future of transatlantic cooperation. He noted that the EU and the US share many common values and interests, including a commitment to free and fair trade and a desire to promote sustainable economic growth. By working together, Dombrovskis believes that the US and the EU can overcome the challenges facing the global economy and build a more prosperous and sustainable future for all.
Overall, the conversation with Dombrovskis highlighted the importance of transatlantic cooperation in addressing the challenges facing the global economy. As the world continues to grapple with the impacts of the Russian invasion of Ukraine, competition with China, and the ongoing COVID-19 pandemic, it is clear that collaboration between the US and the EU will be critical to promoting sustainable economic growth and addressing the urgent issues of our time.