EU, China Summit Ends With No Agreement on Trade --Update
June 02 2017 - 2:25PM
Dow Jones News
By Laurence Norman in Brussels and Matthew Dalton in Paris
Disputes over trade between China and the European Union forced
the two to abandon a planned statement on their commitment to the
Paris climate accord Friday, one day after President Donald Trump
withdrew the U.S. from the global agreement.
The failure raises questions about Beijing's ability to fill a
leadership gap on global environmental policy left by the U.S., as
many observers have predicted it might.
With the U.S. role in doubt for months, European leaders have
turned to Beijing to take the reins from Washington in climate
negotiations. EU and Chinese officials drafted a joint statement
this week proclaiming their "highest political commitment" to the
Paris agreement and vowing cooperation.
Their failure to deliver the statement offers a reminder of the
limits facing world leaders who look to China to carry the torch
for globalist policies opposed by Mr. Trump and his ethos of
economic nationalism.
Chinese Premier Li Keqiang said at a news conference his
country's partnership with the EU "is useful to counter the
uncertainties in the world."
European Council President Donald Tusk said both sides agreed
the U.S. decision was "a big mistake."
The leaders spoke after a summit that had been planned to focus
on trade and foreign policy issues but was overshadowed by Mr.
Trump's decision Thursday, which drew broad international
criticism.
Chinese President Xi Jinping in January delivered a speech at
the World Economic Forum in Davos, Switzerland, in which he
essentially laid claim to China's role as world leader on free
trade. Some observers had expected Mr. Li to seize the moment in
Brussels to assert China's leadership on the environment. China,
the world's largest emitter of greenhouse gasses, is investing
heavily in clean-energy technologies.
In a sign of politicians' search for leadership, French
President Emmanuel Macron was due to meet Friday evening with
former New York City mayor and billionaire philanthropist Michael
Bloomberg, who also serves as a U.N. envoy on climate, to discuss
the Trump administration's decision.
China's size and newfound determination to tackle climate change
have made it the logical heir to the U.S. leadership role,
diplomats and officials say. But some officials from wealthier
nations fear that Beijing's emergence without the U.S. could upset
the delicate balance in the Paris climate deal between developed
and developing nations.
The divide between the two groups of nations has persisted
through years of climate talks. The U.S. and Europe have pushed the
biggest developing nations, led by China and India, to accept some
form of restraint on their emissions. Those nations have pushed
back by arguing that the lion's share of the burden must be
shouldered wealthy nations, which have produced the bulk of
historical emissions.
The Paris accord produced an uneasy truce between the two camps:
Developing nations would work to limit their emissions, while
wealthy nations would mobilize financing to help developing nations
shift to renewable energy and build infrastructure to protect
themselves from the effects of climate change.
Negotiations, however, are ongoing over how to implement the
accord.
Financial support by developed nations to poorer countries of up
to $100 billion annually by 2020 was a major element of the Paris
accord, and it remains unclear how the pact's champions will fill
the gap after a U.S. withdrawal. Major supporters of the climate
deal like the EU and China are reviewing and will discuss the
issue, European Commissioner for Climate Action and Energy Miguel
Arias Canete said Friday after meeting with his Chinese counterpart
in Brussels.
"It is possible that this creates the push to get better
financing on climate change," an EU official said of Mr. Trump's
decision to pull the U.S. out of the Paris agreement. "Discussions
started in Marrakesh in November, when Trump was elected and it
became clear that he was not going to pursue the climate
agreement."
"This fight around the division between developing and developed
countries hasn't been put to rest," said one European diplomat
involved in the talks.
In one dispute, wealthy nations are seeking strong transparency
rules, to ensure that China and other developing nations report
their emissions properly.
"It would definitely have been better with the U.S. at the
table," the diplomat said, "because the Chinese and many other
developing countries are not at the same place about what type of
transparency regime should be in place because of the Paris
agreement."
While Friday's trade differences were unrelated to climate
issues, they hammer home the tensions China has sparked, in another
sphere depending on global rules, by deploying what Europe and the
U.S. have called unfair trade practices. The European Commission
president on Friday warned Chinese Premier Li Keqiang that failure
to tackle these issues could fuel populist movements in the region
that staunchly oppose globalization and free trade.
China has said it is the EU and the U.S. that are breaching
World Trade Organization rules by slapping large duties on some
cheap Chinese steel exports.
--Emre Peker in Brussels contributed to this article.
Write to Laurence Norman at laurence.norman@wsj.com and Emre
Peker at emre.peker@wsj.com
(END) Dow Jones Newswires
June 02, 2017 14:10 ET (18:10 GMT)
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