According to a most recent survey conducted to gauge the mood and sentiment of businesses sin the US and Germany, there are serious doubt in the minds of almost three out of four firms that are currently operational in Germany and the United States over any form of lasting effect such as long lasting agreement between the parties on large-scale tariff cuts that can be achieved form the temporary truce that was achieved recently by the U.S. and the European Union in terms of trade.
Earlier this year in July, there was an agreement between European Commission President Jean-Claude Juncker and the United States President Donald Trump where Trump agreed to put on hold imposition of any further tariffs on each other’s goods – particularly on European cars imported into the US, except those already imposed on steel and aluminum, till such time that negotiations between the two parties are on\going where both would strive to cut other tariffs.
This interim agreement has for the time being able to wade away a full blown transatlantic trade dispute which was a cause of big relief for European companies – especially the car makers in Germany who have a huge presence in the American market. the agreement also apparently helped to lift the business morale for the month of August in the largest economy of Europe – Germany.
However, a very recent survey conducted by the American Chamber of Commerce n Germany (AmCham) has revealed a bitter truth. The survey conducted to estimate business sentiments in the US and Germany concluded that there is strong skepticism among company executives on both sides of the Atlantic and 71 per cent of the company executives taking part in the survey expressing doubts over the lasting effect of the most recent trade truce dispute and tariffs threat between the US and the European Union. the company executives are wondering whether the two parties would be able to arrive as a lasting agreement on the issue of cutting tariffs.
The survey further showed that importance of the US market has diminished for more than 40 percent of German companies engaged in business in the United States ever since the beginning of the trade dispute. In comparison, only about 20 per cent of U.S. companies doing business in Germany were of the view that they should attach less importance to the German market.
According to a White House statement, the ongoing discussions and negotiations between Washington and Brussels for eliminating of the trade barriers and the creation of a deeper trading relationship were given importance to by both German Chancellor Angela Merkel and Trump during a telephone call on Monday.
There is pressure on eth EU by the US to hasten the speed of negotiations between the parties on trade since the meeting last month between Trump and Juncker.
(Adapted from Reuters.com)