IKV Chairman Ayhan Zeytinoğlu commented on the developments following the Trump-Juncker meeting and stated that the reconciliation reached was pleasing, however he emphasised that serious differences of opinion such as Iran sanctions still continue. IKV Chairman recalled that the trade wars triggered by Trump had put pressure on the EU and China and urged them to take counter measures. He continued as follows:   

“We can describe the meeting between US President Trump and European Commission President Juncker a truce. A compromise has been reached to reset tariffs, non-tariff barriers and subsidies for industrial products other than automotive and to reduce bureaucratic obstacles and initiate dialogue on the standards. Although this may provide temporary relief, there is still the possibility that tariffs for the automotive sector will be increased.  The EU announced that it will import more soy beans and LNG from the US as well. It seems that the pressure Trump has been applying has resulted. However, there are still issues which could not be solved, particularly the sanctions on Iran. The EU had adopted a blockade law against the US’ decision to impose sanctions on Iran lastly.  The first phase is expected to enter into force on 7 August. According to this, while companies affected by sanctions on Iran are given the opportunity to receive compensation, they are instructed not to obey these sanctions and not to recognise any court decision that will arise from complying with the sanctions. This situation might pit the EU against the US once again. It is a process which may affect Turkey as well. The EU's approach and interests overlap with Turkey’s at this point.”

“The US helped the EU and China to Get Closer”

IKV Chairman Zeytinoğlu also drew attention to the rapprochement between the EU and China and stated that these two actors have reached agreement on certain subjects against the US’ moves.  Chairman Zeytinoğlu noted as follows:

“The liberal order promotive approach of China and the EU, which have convened on 16 July, is rather intriguing. Two actors expressed their commitments to the international order based on rules centred on the UN. In other words, they promised a cooperation that would replace the US global leadership. To do this despite the US, the EU and China must maintain this cooperation and persuade the US. At this point, it is also important to have an agreement on the reform of the WTO at the Trump-Juncker meeting. We regard it as a positive step in terms of the restoration of the global architecture and the re-functionalisation of international organisations. We hope that it will continue.”

Chairman Zeytinoğlu also stated that ensuring the continuation of the international liberal order without the US is difficult and continued as follows:

When we look at the steps taken by the US as a whole, we see that it wages a war on almost all elements that maintain the global system. Its withdrawal from the Paris Agreement, disregard of the Iran nuclear deal, withdrawal from UN Human Rights Council,  prevention to new appointments to the Appellate Body of the WTO, withdrawal from trade agreements… Trump thinks the multilateral order is no longer for the benefit of the US and not only he withdraws his support for them, but also he is undermining their fundamentals directly. It is normal for the forces that are still in favour of this system to unite in the face of this situation. However, without the US it does not seem possible to maintain this system. All actors need to cooperate in order to draw the US within the system again.”

“The US’ Protection Measures for Steel will Have Impacts on Turkey”

Lastly, Chairman Zeytinoğlu touched upon the temporary protection measures on the EU’s importation of steel products and continued as follows:

“Following the US’ increase in steel tariffs, the EU is resorting to temporary protection measures in order to prevent the steel products which may be heading for the EU market. Within this scope, it will be possible for the EU to implement a 25 percent tariff in order to protect its own steel industry, in case countries including Turkey exceed the determined threshold import. This situation certainly obstructs Turkey’s steel exports from increasing. Steel products exportation is not within the Customs Union scope and is regulated with a different FTA. According to this agreement, customs duties are removed reciprocally; however competition distorting practices and subsidies are banned. Safeguard measures can be applied when there is a possibility of serious damage to steel producers. In this respect, it would be beneficial to include steel products among the studies related to the modernisation of the Customs Union.”