Ireland’s EU Commissioner Michael McGrath warned that Europe’s ties with the United States have reached a “pivotal and dangerous” moment, saying the European Union would deliver a “robust” response if the Trump administration proceeds with tariffs against countries that opposed the U.S. president’s ambitions to seize Greenland.
Speaking to RTÉ News in Davos, McGrath said “we are at a moment of danger in the overall transatlantic relationship,” and cautioned that undermining the international rules-based order would leave the world “in a very dark place.” He urged all sides to “think long and hard” before damaging a partnership that has underpinned peace, security and stability for decades.
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McGrath said the EU and the U.S. concluded a trade settlement after months of talks last year and that Brussels expects Washington to honor it in full.
“We expect the terms of that agreement to be fully honoured by the U.S., as they would expect us to do the same, and that provides the stability and certainty and predictability that businesses crave at a time when there’s so much uncertainty in the world,” he said.
He ruled out any rapid renegotiation. “To come now and seek to reopen and revisit a hard won negotiation that resulted in an agreement with compromises and remade sacrifices on the EU side — for sure, in the broader interest of achieving an agreement — it’s not possible now to have a fundamental reopening so soon.”
McGrath said the crisis over Greenland should reframe how Europe evaluates the EU-Mercosur trade deal, arguing it highlights the need to diversify supply chains and export markets.
“What all of this uncertainty underlines is the need for Europe to diversify its trading relationships and to build new alliances, new relationships and to open up new markets for European companies,” he said. “This is what we’re good at. Europe is exceptionally strong at international trade, exporters of goods and services seeking out opportunities all over the world.”
He said the Mercosur agreement would open access to a market of more than 700 million people and phase out tariffs on over 90% of product lines, calling it “a massive opportunity for Europe and for Ireland.”
Addressing domestic sensitivities around the pact, McGrath said Brussels had engaged closely with the agricultural sector and built protections into the agreement. “We have listened very carefully to all of the legitimate concerns that have been expressed by the farming community, and I think we have put in place robust defence mechanisms to make sure that those fears don’t come to pass,” he said.
McGrath’s remarks, delivered on the sidelines of the Davos gathering, underscore the stakes for the European economy as political tensions escalate across the Atlantic. He cast adherence to last year’s settlement as a test of reliability for both sides and a foundation for the predictability companies need, even as the EU intensifies efforts to spread trade risk and open new markets.
By Abdiwahab Ahmed
Axadle Times international–Monitoring.
