German industry leaders are pressing for swift ratification of a transatlantic trade deal with the United States, voicing concerns that further delays will exacerbate economic uncertainty. The calls come amid anxieties surrounding potential trade measures from the U.S. And a broader debate over global trade policies.
Peter Leibinger, President of the Federation of German Industries (BDI), emphasized the need for clarity, stating in a Deutschlandfunk interview that failing to ratify the agreement would create additional uncertainty that Germany can ill afford. Hildegard Müller, President of the German Association of the Automotive Industry (VDA), echoed this sentiment, urging rasche und konstruktive Gespräche zwischen den USA und der EU, um weitere Eskalationen zu vermeiden und dringende Klarheit zu schaffen
– “rapid and constructive talks between the US and the EU to avoid further escalation and create urgent clarity.”
The urgency from German industry follows a recent U.S. Supreme Court decision regarding tariffs, prompting a renewed focus on the stability of the EU-US trade relationship. , Reuters reported on the BDI’s call for the EU to seek clarification from the U.S. Regarding the consequences of the court’s ruling for the trade deal.
However, the path to ratification is not straightforward. EU lawmakers have already decided to delay approval of the trade deal, citing uncertainty surrounding the policies of U.S. President Donald Trump. According to a post on Deutsche Welle’s Facebook page, the delay stems from concerns about President Trump’s potential trade actions.
The situation is further complicated by broader EU trade priorities. Italian Prime Minister Giorgia Meloni and German Chancellor Friedrich Merz are jointly advocating for the swift entry into force
of both the EU trade agreements with the Mercosur bloc (South American countries) and with Mexico. This push, formalized in a joint declaration to be signed in Rome, signals a desire to diversify trade partnerships and reduce reliance on any single market.
Despite a recent vote by EU lawmakers to send the Mercosur accord for judicial review – a process that could stall ratification for up to two years – European Commission President Ursula von der Leyen indicated clear interest
in implementing the Mercosur deal as soon as possible
. She noted that the possibility of provisional application
was raised by several leaders during an informal EU summit in Brussels. Provisional application would allow parts of the agreement to take effect before full ratification, offering immediate benefits to businesses.
The leaders’ joint declaration also calls for the finalization of agreements with important partners in the Indo-Pacific
, suggesting a broader strategy of forging trade ties across multiple regions. This move appears to be a response to increasing global trade tensions and a desire to secure access to diverse markets.
A key concern underlying these efforts is the perceived threat of unilateral trade measures. Meloni and Merz explicitly stated their opposition to the unilateral use of trade measures as well as the impact of non-market policies disrupting global trade
, a clear reference to potential tariff threats from the U.S. Under President Trump. This highlights a growing anxiety within the EU about the potential for protectionist policies to undermine global trade stability.
The focus on finalizing trade deals with Mercosur and Mexico, alongside the push for a resolution with the U.S., reflects a broader effort to bolster the EU’s economic competitiveness. A report from the Financial Times suggests that some within German industry blame the EU’s own poor competitiveness
as a contributing factor to difficulties in negotiating favorable trade terms with the U.S. This suggests a recognition that internal reforms may be necessary to strengthen the EU’s position in global trade negotiations.
The situation remains fluid. While there is clear momentum from key EU leaders to advance trade agreements, the political obstacles – particularly concerning the U.S. Deal and the Mercosur accord – are significant. The coming months will be crucial in determining whether these efforts will translate into concrete progress or remain stalled by political and economic uncertainties.
