This EU politician wants to use the ‘trade bazooka’ against Trump. Here’s what it means

When it comes to dealing with US President Donald Trump, actions speak louder than words, says European lawyer Karin Karlsbro.

Trump is currently facing European leaders who objected to his repeated threats to take control of Greenland, and his refusal to forbid doing so by force.

The people of Greenland, an independent territory of Denmark, they strongly oppose the US takeover. Denmark, a longtime US ally and member of the NATO military alliance, has repeatedly condemned Trump’s overreach.

Trump announced earlier this weekend that eight countries – EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, as well as Britain and Norway – would face a 10 percent tariff in opposition to US control of Greenland.

In response, the EU argues for retaliatory tariffs against the US, or uses its Anti-Coercion Instrument (ACI). Colloquially known as “sell bazooka,” the ACI will restrict access to public tenders, investment or banking, or restrict trade in services, including digital services.

EU members are divided over whether to withdraw the bazooka. But Karlsbro, a Swedish member of the European Parliament, says it’s time to take off the kid gloves. Here is part of his interview with AIt happens hosted by Nil Kӧksal.

“Europe will not be arrested” is how the Danish prime minister put it. Is blackmail the word you can use to describe what happened with Trump and these charges?

Yes, I think that’s a good word to use in this case, because what we’re seeing and hearing in the White House is really surprising. And this language, we hear, threats, should not happen between allies.

He used the sentence, and others used it as well, “trade bazooka.” It is the Anti-Coercion Instrument you have, but it’s awesome too. Explain to our listeners what you mean when you say “trade bazooka.”

It’s time to speak a language that President Trump understands. The ban must be credible, visible and effective not only in the case of Greenland, but in all forms of coercion from the United States. So it’s time to use the bazooka.

This means that if one EU country faces a major economic threat, it should be seen as an attack on the union as a whole. The EU may collectively respond with stronger measures, which may include tariffs on products or services in the US’s most important sectors, or targeting US investment.

This Anti-Corrosion Instrument can be compared with it Article 5 of NATO: One for all, all for one.

But we hear the president of Hungary, Viktor Orbàn [and] Czech Prime Minister, [Andrej Babiš]so, both do not exactly show full support for Greenland. So do you think consensus within the EU is really possible?

Support for Greenland, for Denmark, has the strongest support, not only from the European Union, but also from our partners from all over the world. So I am sure that the European Union will react and can react appropriately.

What kind of song do you think the United States would take seriously from what you’re proposing with this trade bazooka?

It is important to show that we are walking the talk, and that the EU can and wants to, and has the power to walk this way. And, if that happens, it will be in a way that affects critical products and sectors of the US economy.

President Trump, he ran his election campaign to improve the American economy and he liked tariffs because that would benefit jobs in the US But in fact now he is doing it in a way that will lead the US in the other direction.

Once you’ve presented what you’re suggesting, do you think he’ll just escalate things further? Are you worried about that?

We see that inaction leads to escalation. So it is important that we act, respond to this and speak the same language, because doing nothing is not the way forward.

This tool, as I understand it, was originally created to be prepared in case you need to have a response to something that China might do in the future. Did you ever think that you would be estimating that you would use it against the United States?

No. And, of course, it’s very unfortunate that we’re in this situation because the US is a very important trading partner. Your partner when it comes to security, and has been for decades. And still, although it is very difficult today, … I think we will have the same future together.

Our CBC News colleagues and others report that …. Prime Minister Mark Carney is considering sending troops to Greenland. Is that what you would support, what the EU would like to see?

It’s in Denmark and Greenland, of course. It’s basically a question for them. But from my point of view, from our point of view, I think if we can cooperate and try to have a common approach to this, we will remain strong.

I wonder what you’re doing, Karin, reporting that Donald Trump, you know, is taking a stand against Greenland because he was not awarded the Nobel Peace Prize?

I mean, I can’t find words for something this crazy.

What is the worst situation in your mind? I mean, do you think what’s going on is some kind of negotiating ploy, or do you envision a situation where the US would actually try to take Greenland by force?

I think we should take President Trump seriously and listen to what he has to say.

But with a strong reaction, and if we walk the talk and if we do, as I explained, if we use the commercial bazooka, and if we increase our willingness to show our military presence, of course, in the framework of NATO … I am sure that this will not happen.

Because many people, politicians, and representatives of Donald Trump’s own party, understand that this is a very bad idea. And it’s not just about Greenland [and] Denmark. It is about all countries. Because this is a threat to the world order, and borders should not be changed by violence or threats.