Don’t just look at China
Scholz wants to avoid Russian mistakes in the future
11/22/2022, 18:11
Russia’s attack on Ukraine also caught Germany off guard – in the form of skyrocketing energy costs. It must not happen a second time, Chancellor Scholz now swears in and advocates for new trade agreements with the US and South America.
Chancellor Olaf Scholz has spoken out in favor of an industrial tariff agreement with the US. The SPD politician told the “Economic Summit” of the “Süddeutsche Zeitung” that he was pleased that progress was “hopefully” being made on trade agreements with New Zealand, Australia, India, Mexico, Chile and after elections in Brazil with South American economic alliance Mercosur.
“We should also take a close look at the idea of an industrial tariff agreement with the US.” Such a deal would be “always better” than a bidding war on subsidies and protective tariffs, which some say “came our way” as a result of America’s anti-inflation laws, Scholz said.
The United States wants to invest tens of billions of dollars in climate protection over the next ten years, for example to promote the manufacture of solar cells and wind turbines. It is now feared that European and German companies will move to the US or open new factories there.
Globalization yes, but not only with China
The traffic lights coalition recently agreed to ratify the CETA Europe-Canada free trade agreement and to deepen the partnership with the US. Scholz recognizes globalization. Germany and Europe in particular, with their high-tech and export-oriented economies, depend on the international division of labor.
However, Scholz campaigned for a broader German economic position in dealings with international partners. “A dependency mistake like Russia’s has not happened to us a second time,” he said referring to China. German companies are innovative and adaptable and don’t have to worry about evolving into a multipolar world.
“There are still many other strong countries that have gone unnoticed,” he said referring to India, Indonesia, Vietnam and South Korea. After speaking with the German economy, he believes that diversification, that is, increased focus on other markets, has come a long way.
