EU should negotiate with US, China with ‘gun in pocket’, says Lamy

The return of Donald Trump to the White House along with China pose existential challenges for the EU on trade, and the bloc must negotiate, but with a gun in its pocket, the former World Trade Organization (WTO) Director-General Pascal Lamy has told Euronews.

“We now have two big elephants in the world, China and now the United States who want to overhaul the system. To do what? Unclear,” Lamy, a former EU trade commissioner, told Euronews’ Europe Conversation.

“They both say this system [the WTO] is not good for us and we need to use the power we have to change it, and yes of course that puts the EU, which is the epitome of a regulator – disciplined, ordoliberal system – in a bind,” he said.

The President of the Jacques Delors Centre’s Advisory Board said he is “worried about the world” and about whether the EU will be able to overcome this “existential” challenge.

US President Donald Trump has threatened to apply 25% tariffs on Mexico and Canada, and in addition to threats to impose further tariffs on China and the EU.

“That’s my experience of negotiating with the US and China and other big shots, when I was in this business. You should do that with a gun in your pocket,” Lamy warned.

He believes the EU has the means to retaliate thanks to its large market. “US exporters of a number of products will have problems if we retaliate,” he said.

Stay tuned and listen to the full interview in next week’s episode of The Europe Conversation to get more insights on trade, the EU, China and the environment.