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Germany paves the way for a trade war in the aftermath of Brexit by urging the EU to quickly wrap up a dozen deals around the world
Published in Alriyadh on 28 - 01 - 2017

Germany yesterday paved the way for a trade war in the aftermath of Brexit by demanding that the EU quickly wraps up a dozen deals around the world.
In a sign that Europe's main economic power is concerned about the close ties between Theresa May and Donald Trump, it called on Brussels to begin a deal-making spree.
The timing of the intervention by Germany also highlights growing diplomatic tensions between Angela Merkel and the new US President as her officials issued a veiled criticism of his trade approach.
Donald Trump and Theresa May walked hand in hand at the White House today as they hailed a resurgent Special Relationship - and he insisted Brexit would be 'wonderful'.
The President said he was 'honoured' by Mrs May's visit and that relations between the two long-standing allies had never been stronger as the leaders held a press conference at the White House.
He also signalled he had reassured Mrs May about America's commitment to NATO and pledged to continue the working relationship between the two countries.
The British Prime Minister also revealed that the President and First Lady have accepted an invitation from the Queen to make a state visit to the UK later this year with full pomp and ceremony.
By contrast, the German chancellor is understood to be increasingly frustrated by her inability to engage or open up channels of communication with Mr Trump.
While Mrs May yesterday became the first foreign leader to meet Mr Trump in the White House, Miss Merkel will instead have a short phone call today.
Already falling behind in the polls ahead of the upcoming election, she is under pressure to make sure Britain and the US do not leave her country behind.
During a meeting of EU finance ministers in Brussels yesterday, German officials warned that the EU needed to act because of supposed threats posed by Brexit and Mr Trump's presidency.
A document circulated by finance minister Thomas Steffen urged other EU states quickly to tie up 12 free trade deals with countries including Japan, China, Australia and New Zealand.
While many of the discussions have been dragging on for years, Berlin is understood to want to bolster the EU's economic clout as Brexit negotiations are finalised by sealing the agreements.
In an apparent reference to Mr Trump's decision to rip up the landmark Trans-Pacific Partnership agreement, the document urged EU leaders to 'give a timely push against protectionism'.
A German diplomatic source said: 'We think it is important that the 27 [remaining member states after Brexit] stick together and back up our belief, which is in free trade.'
The official denied that the paper was targeted at the US.
EU officials this week warned the UK that it could not begin negotiating trade deals with other countries until after it agreed the terms of its 'divorce bill'.
Brussels chiefs suggested that advanced talks could breach the obligations under EU treaties.
But Chancellor Philip Hammond, who attended yesterday's meeting, insisted that the UK would 'abide by the rules'.
Meanwhile, one of the leading candidates to become France's new president yesterday accused Britain of becoming subservient to the US.
The Left-leaning Emmanuel Macron said: 'Britain lived in an equilibrium with Europe. But now it is becoming a vassal state, meaning it is becoming the junior partner of the United States.'
Adding to Merkel's misery were figures revealed yesterday showing as many Germans would vote for new Social Democrat (SPD) leader Martin Schulz as for conservative Angela Merkel in a direct vote for chancellor.
The Infratest dimap poll for ARD television, conducted on Wednesday, put both at 41 percent, with support for Merkel down two points from September and for Schulz up five points.
The SPD nominated former European Parliament president Schulz on Tuesday to run against Merkel in the September election after Sigmar Gabriel said he would stand aside to boost the party's chances.
Schulz will officially be appointed leader on Sunday.
The poll showed that Merkel's Christian Democratic Union (CDU) and its CSU Bavarian sister party would win 35 percent of the vote if it were held on Sunday, down two percentage points from the last poll.
The SPD would win 23 percent of the vote, an increase of three percentage points that the pollsters said was likely due to the news about Schulz.
The pro-environment Green party would win an unchanged nine percent of the vote, with the anti-immigrant Alternative for Germany (AfD) party capturing 14 percent of the vote, a drop of one percentage point from the previous poll.
The Left party would win eight percent of the vote, while the Free Democratic Party would win six percent, the poll showed.
Federal elections take place in September.


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