The European bloc confirmed yesterday the start of free trade negotiations with Australia and New Zealand in order to establish new relations against the increasing trade tensions with the United States. The European Commission represents the 28 EU countries and negotiates about its plans and agreement towards the AU and NZ despite the warnings on opening the EU markets to generate farm products like beef and butter. According to forecasts from EU, its exports towards Australia and New Zealand may expand by a third in case that trade agreements were finalized. Considering the fact that its trade partnership with the US was suspended by the presidential election victory of Donald Trump, the EU shifted its focus to build allies with open markets and struck agreements with countries on the same mind.
The bloc also deals with the result of steel and aluminum tariffs set by the US and the sanctions they would impose against Iran, which could lead to restriction of certain foreign businesses. The EU closed the deal with Japan, Mexico and Singapore and currently working with the Mercosur bloc of Argentina, Brazil, Paraguay, and Uruguay.
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