Ursula von der Leyen's deal regarding the Turnberry golf course is seen as a capitulation for Europe, undermining its credibility. The agreement imposes one-sided economic terms, leading to diminished access for EU exporters and a favorable tilt toward the US in key sectors. The EU concedes its right to retaliate against future US pressures. Additionally, von der Leyen's unwarranted commitment of substantial EU investment in the US exacerbates the issue, indicating a dire need for the EU to maintain a strong position in global trade.
The blow to Europe's international credibility is incalculable in a world that expects the EU to stand up for reciprocity and rules-based trade, to resist Washington's coercion.
Economically, it's a damaging one-way street: EU exporters lose market access in the US while the EU market is hit by more favoured US competition.
The EU even gives up its right to respond to future US pressures through duties on digital services or network fees.
Von der Leyen's promise of $600bn in EU investment in the US is therefore disastrous messaging.
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