Davos (Switzerland) (AFP) – EU, German, and Chinese leaders took turns defending global cooperation in Davos on Tuesday as the spectre of new trade wars looms following Donald Trump’s return to the White House. Trump will make an online appearance at the World Economic Forum in Switzerland this week, but he has been the elephant in the room for the executives and leaders hobnobbing at the annual conference in the Swiss Alps.
In their speeches, European Commission President Ursula von der Leyen, Chinese Vice Premier Ding Xuexiang, and German Chancellor Olaf Scholz offered visions of the world that are mirror opposites to those of the self-professed tariff-loving Trump. “Protectionism leads nowhere and there are no winners in a trade war,” Ding said, without mentioning Trump directly. Trump threatened Monday to impose tariffs if Beijing rejected his proposal to keep Chinese-owned app TikTok online on condition that half of it is sold off.
Meanwhile, von der Leyen took a conciliatory tone, saying the EU’s “first priority will be to engage early” and “be ready to negotiate” with Trump. “We will be pragmatic but we will always stand by our principles, to protect our interests and uphold our values,” she said. The European Commission president also stated that Europe “must engage constructively with China – to find solutions in our mutual interest” despite escalating trade tensions between the two. Brussels has provoked Beijing’s ire with a raft of probes targeting state subsidies in the green tech sector, as well as imposing tariffs on Chinese electric cars. Ding warned against “erecting green barriers that could disrupt normal economic and trade cooperation”.
Trump has threatened to impose extra customs duties on allies including the EU, as well as on China. After his inauguration, he raised the possibility of imposing 25 percent tariffs on Canada and Mexico. Von der Leyen reiterated her commitment to free trade during her speech, pointing to recent EU deals with Switzerland, Mexico, and the South American bloc Mercosur. She also mentioned that she and Indian Prime Minister Narendra Modi wanted to “upgrade” their partnership.
Scholz vowed to “defend free trade” with other partners, warning that “isolation comes at the expense of prosperity.” “President Trump says ‘America First’ and he means it. There is nothing wrong with keeping your own country’s interests in mind,” Scholz said. “It’s just that cooperation and understanding with others are usually in your own interest as well.” It was probably Scholz’s last speech in Davos as chancellor ahead of German elections next month. Scholz used his speech to take another shot at Tesla and X owner Elon Musk, who has angered the chancellor with his support of Germany’s far-right AfD party. “We have freedom of speech in Europe and in Germany,” Scholz said. “Everyone can say what he wants even if he is a billionaire. What we do not accept is if this is supporting extreme right positions.”
Aside from tariffs, Trump has also rattled the world with his decision to withdraw from the Paris climate agreement. Von der Leyen defended the climate pact as the “best hope for all humanity” and vowed that “Europe will stay the course”. Ukraine is also keeping a very close eye on what Trump’s second term will involve. Speaking in Davos, Ukrainian President Volodymyr Zelensky questioned whether Trump was committed to NATO and European security. “Will President Trump even notice Europe? Does he see NATO as necessary? And will he respect EU institutions?” he said. Zelensky told reporters later he was working on meeting Trump but there was no date yet. “We want to finish the war and President Trump says that he also really would like to finish the war, and I believe he will help us with this,” he said.
Middle East conflicts are likewise high on the agenda. Qatar’s prime minister said a lasting peace in Gaza would depend on Israel and Hamas acting in “good faith”, days into a fragile truce in the Palestinian territory mediated by the Gulf state. “If they are embarking in this in good faith, this will last and hopefully will lead to phase two, will lead to a permanent ceasefire,” Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani told the forum.
© 2024 AFP
