U.S.-China trade agreement to hit EUChristian Fernsby ▼ | February 17, 2020
The ceasefire in the U.S.-China trade war will hit the European Union. Most strongly in Germany, as pointed out the Polish Economic Institute (PIE).
Economy China flowers
Topics: U.S. China trade
PIE indicated that the agreement also provides for the purchase of US agricultural products by the Chinese side, including meat, cereals, oilseeds ($32 billion), energy resources ($52 billion) and selected services ($38 billion).
In the opinion of PIE experts, the entry into force of the ETA agreement may have the classic effects of shifting trade flows. To meet their obligations to the US, Chinese importers are likely to reduce their imports from other foreign suppliers, including from EU countries.
According to the Institute, the sale of Polish goods in China may, however, suffer relatively little. Among EU countries, Poland had one of the lowest shares of products covered by the ETA agreement in exports to China in 2018 they accounted for less than 44 percent. ■