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Where is the protection of steel and domestic industries?
Excessive protection of domestic industries and barriers to steel trade in the US and Europe are causing a decline in the world's economic growth. Damaging the free trade of steel to the world economy hurts.
The excessive protection of domestic industries and the impediment of creating free trade does not only harm the country in which this policy is taking place, but also harm the entire world economy, as consumers and downstream businesses use The commodities produced with raw materials should cost more. Christine Verricorn, secretary-general of the euro zone trade commission, spoke in an interview with the network of Shane AirNet on the full text of this interview:
Question: Donald Tramp, the president of the United States, was the first person to order import tariffs for steel products, and then Europe, with the choice of a few countries, laid down rules for imported products from these countries. What do you think about the policies that Western countries are currently pursuing and preventing the free trade of steel?
In my opinion, it is better for the EU economy and the world economy not to go astray in the free trade, because in a world of free trade, firms are investing in the quality of their products to increase their competitiveness, and products are marketed. They say that the price is lower and the quality is higher, which is in the interests of both consumers and the world economy.
Question: Who do you think is most harmful to these policies?
First and foremost, there are importers of steel and European and American steel products that are damaged, but the consequence of this limitation is the increase in the price of domestic steel products due to a lack of supply in the market that targets final consumers and costs a lot Imposes on them. But if we look at the issues at large, the whole economy will bear costs because the volume and value of the trade will be reduced and, given that trade has a large contribution to GDP growth, there will be scope for a lower GDP growth rate. In fact, a false economic policy that has been used repeatedly over the course of history, and in all cases results in a negative economic outlook, can lead to several times the world's economic problems.
Question: In your opinion, how much does Europe need to support its steel industry?
In my opinion, the support of factories and weak manufacturing units that do not compete with other market makers is not in the interest of the European economy, nor in favor of the steel industry. In my opinion, European steelmakers, like other countries in the world, should work in a free space and continue to operate without excessive supportive measures.
Question: Where do you think the main weakness is?
In my opinion, the weakness is that production units do not have the ability to compete and rely on the government to continue their work. On the other hand, economic policies in the European countries are not well designed, and the same weaknesses have caused these problems in the steel industry. In this context, much of the cost is imposed on the European economy, and these costs can undermine the economy over time, but if reforms in various economic sectors are carried out, it can prevent the continuation of the crisis.