EU may fill 'void' in global trade left by U.S. under Trump: Malmstrom

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[December 02, 2016]  WARSAW (Reuters) - The European Union might fill a void in global trade left by the United States if the world's biggest economy turns more inward-looking with Donald Trump as president, EU Trade Commissioner Cecilia Malmstrom said on Friday.

 

Trump won the Nov. 8 election campaigning on a protectionist policy stance that has raised concerns among some economists that global trade could suffer during his four-year term.

"Now it is possible that the United States will be more inward-looking over the coming years. Less prone to negotiate trade agreements, but also to engage on the international scene," Malmstrom said.

"I think the EU has a possibility to fill the void," she told a congress of the Alliance of Liberals and Democrats for Europe (AlDE) party in Warsaw.

Trump threatened during his election campaign to dump a trade agreement with Mexico and Canada as well as to tax money sent home by migrants to pay for a wall along the southern U.S. border with Mexico.

"We can show that walls, that protectionism are not what the world needs right now," Malmstrom said. "We can show that open borders and trade are compatible with sustainable development and high standards.”

The United States and EU were committed to sealing a much-debated trade deal before President Barack Obama leaves office in January, but both sides now recognize that this will not happen with Trump soon to take office.

(Reporting by Marcin Goettig; editing by Mark Heinrich)

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