Deputy Minister of Economy and Industry, Nikolay Pavlov, took part in the extraordinary meeting of the Foreign Affairs Council /Trade/, which was held in Luxembourg. At the meeting, ministers discussed trade relations between the EU and the US, and between the EU and China.
During the first session, Deputy Minister Pavlov pointed out that the United States is not only the European Union’s main trading partner, but also a key strategic and geopolitical ally. Given this, efforts should first and foremost be made to maintain mutual dialogue and to take a proactive and constructive approach in the upcoming negotiations. At the same time, the EU should be prepared to respond in a proportionate manner if the negotiations do not lead to a desirable outcome for the EU.
According to him, in the event of any subsequent retaliatory measures, their impact on European industries should first be carefully assessed before deciding on their extent and form. Attention should also be paid to the risk of trade flows being diverted to the EU from third countries. “It is necessary to act quickly to prevent businesses from relocating and to ensure that our companies remain active in the internal market. To this end, the attractiveness of the Single Market needs to be increased by simplifying regulatory regimes and reducing the administrative burden,” Pavlov added.
He explained that a comprehensive plan to support businesses should be developed in the event of further escalation on the subject. Pavlov stressed the importance of unity and cohesion among EU member states in the approach towards the US.
During the second session, trade relations between China and the EU were discussed. The Deputy Minister of Economy emphasized the importance of engaging in constructive dialogue with this key EU trading partner, with the aim of balancing trade relations, ensuring a level playing field and fair competition. He stressed that trade diversification should remain a key priority for the EU. “We need to secure new trade agreements, especially for critical raw materials, with reliable partners to reduce our dependencies on China,” the Deputy Minister for Economic Affairs said, adding that this is essential not only for stabilizing our economic ties with Beijing, but also for protecting the EU’s broader strategic interests.