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Thursday 1 June 2017
EU Commission leader blasts Trump on climate What’s behind the German

By LORNE COOK earlier in the day that Trump the Paris Agreement and trade surplus riling Trump?
Associated Press was planning to pull out of accelerate the global tran-
BRUSSELS (AP) — The Eu- the Paris deal, although a sition to clean energy,”
ropean Commission presi- final decision hadn’t been EU climate commissioner By DAVID McHUGH
dent on Wednesday said made. Miguel Arias Canete said AP Business Writer
that it was the “duty of Eu- Trump on Wednesday de- about the upcoming EU- FRANKFURT, Germany (AP) — President Donald Trump
rope” to stand up to the clared that abandoning China summit, stressing keeps criticizing Germany’s trade surplus with the Unit-
ed States. Germans say their products are just better
and people want to buy them.
One thing isn’t in dispute: German companies sold 107
billion euros ($120 billion) worth of goods to U.S. cus-
tomers last year. Going the other way, U.S. companies
sold 58 billion euros ($65 billion) worth of stuff to Germa-
ny. The result: a German trade surplus of 49 billion euros
($55 billion). Trump tweeted Tuesday that “we have a
MASSIVE trade deficit with Germany, plus they pay FAR
LESS than they should on NATO & military. Very bad for
U.S. This will change.” He also told EU officials that Ger-
many was “very bad” on the trade question during his
stop in Brussels last week.
What’s behind all this? Here’s a look at Germany’s trad-
ing relationship with the U.S. and the rest of the world.

Q: Why does Germany sell so many goods in the Unit-
ed States?
A: Germans, including Chancellor Angela Merkel, are
quick to say that German companies just make better
products. There’s something to that, as anyone noting
all the Mercedes-Benz and Porsche rides in well-heeled
neighborhoods will have to concede. Germany’s ex-
port success also depends on less glamorous goods,
often highly technical industrial equipment made by
A swarm of birds flies past wind turbines just before sunrise in the outskirts of Frankfurt, Germany. A
senior EU official says Wednesday, May 31, 2017, the EU and China will reaffirm their commitment smaller firms that dominate global niche markets. They
to the Paris climate change accord this week, regardless of whether President Donald Trump pulls have a lot of practice at exporting and they’re good
out of the pact. The official told reporters that the EU and China will also “spell out” how they plan at it.
to meet their commitments to the accord at talks in Brussels on Friday.
(AP Photo/Michael Probst) Q: So trade is all one way — advantage Germany?
A: Despite concerns about the surplus there are ben-
U.S. if President Donald the Paris climate agree- they remain committed to efits to businesses and workers in both countries from
Trump decides to pull his ment would be a victory for Paris. their close and longstanding business ties. Germany is
country out of the Paris cli- the American economy. A White House official said the sixth-largest export market for the U.S.
mate change accord. The European Union and Wednesday that there Also, German companies often invest, hire and sell in
Jean-Claude Juncker said China, meanwhile, will re- could be “caveats in the the United States rather than exporting there. Around
that “the Americans can’t affirm their commitment to language” announcing a 600,000 people in the U.S. work for German compa-
just get out of the agree- the Paris climate change withdrawal, leaving open nies, according to the German American Chambers
ment,” adding that “it accord this week regard- the possibility that his deci- of Commerce in New York. They include familiar cor-
takes three to four years” less of whether the U.S. pulls sion isn’t final. porate names such as chemical firm BASF, drug com-
to pull out. out of the pact, a senior EU That possibility was met pany Bayer, mobile communications provider T-Mobile
Juncker went on to say that official said. with derisive howls from EU USA, and food retailer Trader Joe’s. Daimler AG’s Mer-
the Group of Seven leaders The official told reporters lawmakers when a session cedes-Benz has a factory in Tuscaloosa County, Ala-
“tried to explain this in clear that the EU and China will of the European Parliament bama, while Volkswagen makes cars in Chattanoo-
simple sentences to Mr. also “spell out” how they was informed about it. ga, Tennessee. The BMW plant in Spartanburg, South
Trump” at a recent summit plan to meet their commit- “Climate change is not a Carolina, was in fact the largest single auto exporter,
in Italy. He said that even ments to the landmark in- fairy tale. sending $9.5 billion worth of SUVs through the Port of
though “it looks like that at- ternational accord to fight It is a tough reality which Charleston to the rest of the world.
tempt failed” ... the “law is global warming at talks in affects peoples’ daily Q: Is Trump alone in criticizing Germany’s trade surplus?
the law”. Brussels on Friday. lives,” European Parlia- A: No. Others have also complained about Germany’s
In a jibe at the U.S. admin- The official is involved in ment President Antonio trade and investment surplus with the eurozone and
istration, Juncker told the preparing the meeting be- Tajani said in a statement. the rest of the world. Then-Premier Matteo Renzi of Italy
audience at an event of tween EU Council President “People die or are obliged said last year that the German surplus isn’t good for
the Confederation of Ger- Donald Tusk, Juncker and to leave their homes be- the eurozone. Former Federal Reserve Chairman Ben
man Employers in Berlin Chinese Premier Li Keq- cause of desertification, Bernanke wrote in 2015 that Germany’s trade surplus
that “not everything that iang, but can’t speak on lack of water, exposure to “is a problem” since government policy leads to less
is written in international the record because their disease, extreme weather spending by Germans, in a region that needs all the
agreements is fake news.” meeting statement wasn’t conditions. If we don’t act growth it can get.
Juncker said: “If the U.S. finalized. Li and a major swiftly and boldly, the huge
president pulls out of the Chinese delegation are human and economic cost Q: What could Germany do?
Paris agreement, and he due to arrive in Brussels late will continue to increase.” A: Bernanke said that “Germany has several policy
will in the next days or Thursday following talks in Tajani suggested that tools at its disposal to reduce its trade surplus — tools
hours, then it is Europe’s Berlin. Washington’s withdrawal that, rather than involving sacrifice, would make most
duty to say that that is not “The EU and China are join- should be a signal for Eu- Germans better off.” Those steps could include more
how it works.” ing forces to forge ahead rope to step up its efforts — spending on roads, bridges and airports. That could
A White House official said on the implementation of and reap the benefits.q help increase domestic income and spending. q