Europe 'must seek US trade deal'

The situation in Ukraine has prompted Germany to call for intensified economic and political cooperation between the European Union and the United States, and for a free-trade deal to be inked as soon as possible.

Germany's finance minister, Christian Lindner, said on Sunday Russia's so-called special military operation in Ukraine had made it obvious that cooperation between like-minded nations was more important than ever.

He told the German newspaper Handelsblatt: "We should resume negotiation on a transatlantic free-trade agreement. Especially now, in the (Ukraine) crisis, it is becoming clear how important free trade is with partners around the world who share our values."

He said the EU and US should, therefore, revive talks about a potential free-trade agreement that stalled when former US president Donald Trump walked away from potentially participating in the Transatlantic Trade and Investment Partnership back in 2016.

Tension between the US and EU over Trump's unusual handling of long-standing friendships subsequently led to a trade war between Brussels and Washington, which together account for almost half of the world's gross domestic product.

The current US president, Joe Biden, has diffused much of that tension with the EU and will participate in a NATO summit in Brussels, Belgium later this month, where member nations will discuss the situation in Ukraine. European countries will also hope to see additional signs that closer economic and political ties will be forged between the bloc and Washington, following an announcement last week that the two sides will reboot negotiations on securing a deal.

Lindner said Europe should learn from past mistakes and make sure a deal is found this time around.

Previously, there was considerable pushback from some parts of Europe against a free-trade deal with the US due to concerns that an agreement could dilute the EU's strict food and environmental standards.

Achim Wambach, president of the Center for European Economic Research, told Handelsblatt the situation in Ukraine had illustrated how important it is that problems are overcome and deals reached.

"We need more trade agreements and in particular with allies such as the US," he said.

The Reuters news agency said the US embassy in Berlin did not respond directly to Lindner's statement but noted mechanisms are already in place to ensure the two sides can cooperate closely.

"The current crisis shows the United States and Germany, and the European Union, are indispensable partners," the embassy said.

The Independent newspaper noted that it is unclear how strong support will be throughout Europe for a future free-trade deal with the US. But the paper said the fact that Germany is calling for an agreement in such strong terms illustrates how Russia's activities in Ukraine have "revived and tightened" ties between Western democracies that had become "much looser" in recent years, effectively pushing back together allies that had drifted apart.