Joint trade union statement on 20% tariffs on goods from the EU announced today by the US government.
The 20% tariffs on goods from the EU announced today by the US government will hit working people hardest.
While the full extent and impact of the tariffs announced by the US is not yet clear, it is essential that the EU response delivers a comprehensive strategy to stabilize the economy and save jobs as it responds to the changed trade environment.
Europe must not be bullied out of our values and standards. We must not water down our rights and rules.
Essential elements to protect jobs and incomes
The counter measures, tariff and trade instruments that the EU will deploy will not be enough to protect working people, the employment dimension must not be overlooked. Protecting employment must be an immediate priority.
1. As a starting point, the success of the measures in the EU’s SURE initiative, which protected jobs and livelihoods during the pandemic, must be urgently reintroduced. Support should be available to safeguard jobs in companies impacted by tariffs, but it should not be used to increase profits or for shareholder dividends.
2. With so many people facing a jump in the cost of living and the threat of possible job losses Europe needs an effective emergency plan that must include measures to control profiteering and limit increases to prices of essentials, especially food.
3. Internal demand must be boosted. Wages and purchasing power must be protected and increased. Major investments are also needed to get ahead on the technologies of the future. A permanent investment tool based on common debt instruments as well as a rethink of the EU’s economic governance rules are essential. Europe cannot overcome this crisis with its economic and financial hands tied behind its back.
4. The ECB must refrain from increasing interest rates in response to any increases in prices caused by higher tariffs. It would be a serioius mistake that would further destabilise the economy, instead a decrease in interest rates will be needed.
These tariffs are unjustified and not based on reality. They are not aimed at ending unfair competition, for example exports coming from countries with bad labor standards and very low wages. They are instead aiming for maximum damage to European production and workers on the EU and the US will be hit with increased prices and, unless emergency measures are taken, job losses will likely follow.
It’s time to develop a progressive rules-based trade open, just and sustainable, providing equal rights and benefits for workers and citizens, with the ILO, as global leader in social regulation, working with the WTO and the UN to regulate multilateralism. It is important for the EU to continue to seek negotiated solutions, while safeguarding its economic and employment interests.
Manufacturing
Manufacturing sectors are in the eye of the storm. Limiting the response to trade retaliation measures will not protect jobs. Instead, a dual approach is needed: a SURE-style job protection mechanism coupled with a permanent investment facility up to the task of prioritising quality jobs in a volatile geopolitical environment, and a proactive European industrial policy strategy focused on stimulating internal demand for European manufacturing value chains within the European market. The EU needs a strong, coordinated response that prioritises safeguarding jobs and that supports our industries, and strengthens our manufacturing base. Investing in European industry and supporting its workers is essential to securing our long-term stability. Decisions in Washington only make a rapid and well-resourced European Industrial Plan all the more important and urgent. It must be ambitious enough to respond to the challenges faced by the targeted sectors and our wider industrial fabric. read more here
Agro-food
It is urgent to develop support programs for regions and branches more dependent on food exports to the U.S, with resources to be linked to social conditionalities. The agri-food sector is already severely disrupted by the impacts of climate change and volatility in food commodity markets. The agri-food sector is already severely disrupted by the impacts of climate change and volatility in food commodity markets. Stability, predictability and fair access to international markets are key to ensuring sustainable growth and the creation of quality jobs. Potential retaliatory measures affecting the agro-food sector may be counterproductive and disruptive to food supply chains, posing an additional threat to jobs and food security.