Estonian minister, EU colleagues focus on EU-US trade relations

TALLINN - Estonia's Minister of Economic Affairs and Industry Erkki Keldo attended a meeting of European Union foreign trade ministers in Brussels on Thursday, which focused on trade relations between the European Union and the United States.

The central question of the meeting was how to reach an agreement with the US on tariffs within 90 days and what the EU's countermeasures would be if the negotiations were to fail. European Commission Trade Commissioner Maroš Šefčovič provided the ministers with an overview of the latest developments, spokespeople for the Estonian Ministry of Economic Affairs and Communications said.

"Estonia relies heavily on exports and free trade, which is why various trade restrictions and tariffs are definitely not in our interest. On the other hand, we must also protect the interests of the European Union and Estonian businesses. Although every day that tariffs remain in place causes European companies to lose money, we must avoid rushing the negotiations and agreeing to terms that are unfavorable to us," the minister said.

The United States also has much to lose from trade tensions with the EU.

"The EU single market is the third largest in the world, and together with the US, we account for over 40 percent of global GDP. That is certainly a key argument in the negotiations," Keldo said.

There was a prevailing consensus among the ministers on possible countermeasures.

"A trade war is in no one's interest, but within the EU we must show strength and unity and stand up for our interests," the Estonian minister said.

He acknowledged that although in the short term the effects of EU retaliatory tariffs may be negative, in the long term it will help open up new opportunities for businesses and reduce dependence on one specific market.

"It is clear that trade relations with the US will remain turbulent in the coming years, which is why we must certainly move forward with negotiations on new free trade agreements to open up new markets for EU companies, be it the Asia-Pacific region, Africa or India, for example," Keldo said.

Trade relations between the EU and Ukraine were also discussed at the meeting. The existing trade agreement expires on June 6 and negotiations on a new agreement are ongoing.

"We need a permanent bilateral agreement in trade relations with Ukraine, which would help to integrate Ukraine into the EU single market. I hope that it will be concluded in the coming weeks," Keldo added.