NEW DELHI: Amid the rising concerns over global trade due to Trump’s tariff policy, Rosa Balfour, Director at Carnegie Europe, said that something must be done to protect the international trading system.
Her comments come in response to ongoing tariff impositions by US President Donald Trump, which many see as a threat to global economic stability.
In an exclusive conversation with ANI, Balfour criticised recent actions by the US government, calling them “self-defeating” and “suicidal policies.”
She said it is not clear whether the US has any actual strategy in place, and warned that such actions could seriously harm the global trade system.
“Something needs to be done to preserve the global trading system, which has already taken many hits,” she said, pointing to multiple challenges including the rise of powers that do not follow global trade rules, ongoing wars, and international sanctions.
However, Balfour also noted that other countries are stepping up to the challenge.
“What is important is to see that other countries are rising to the challenge, trying to preserve what there is, which potentially could lead to trying to improve what there is,” she added.
One such positive step, she mentioned, is the ongoing discussion between India and the European Union over a Free Trade Agreement (FTA).
Talks between the two sides have been ongoing for over 20 years, but recent statements from both Indian Prime Minister Narendra Modi and
European Commission President Ursula von der Leyen have raised hopes that an agreement may finally be reached.
“The bar has been placed very high, with the Indian Prime Minister and the European Commission President saying that they should complete the FTA by the end of this year. This might be slightly optimistic, but it will also put pressure on them to deliver. The question, therefore, is how deep the FTA will be… Nonetheless, there’s a lot of promise in this, and it seems to present the seeds of an alternative strategy to a global trade war,” said Balfour.
She stressed that while challenges remain, the India-EU FTA could be an important step when the US is taking steps that may isolate it from the rest of the world.
“With the US intent on upending the global economy, other countries and large blocs are working to make sure they have a web of relationships that can preserve global trade in the face of one country that is intent on destroying it and isolating itself from the global economy,” Balfour said.
The comments highlight growing concern about the direction of US trade policy and the efforts of other nations to build resilient economic ties in response. (ANI)
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