Financial News

Daily Picks Wednesday: Merkel Calls Out Trump

3 Min Read

Here are summaries from a selection of articles we read today:

Britain could keep frictionless trade after Brexit by joining EEA and customs union, Michel Barnier says


  • Mr Barnier said that the European Economic Area (EEA) with a customs union was a possible model for a future relationship.
  • The EEA has its own customs policy which could make joining both difficult without renegotiation.
  • The current agreement also does not cover VAT or agriculture, the latter of which would be particularly important to prevent a hard border in Northern Ireland.
  • The government is instead seeking a “bespoke deal” without freedom of movement, single market or customs union.
  • Mr Barnier has already stated that the UK would have to stay in the single market and a customs union in order to have frictionless trade with the EU after Brexit.

Merkel Calls Out Trump, Citing Services Surplus With Europe


  • Merkel said “Trade surpluses are still calculated in a pretty old-fashioned way, based only on goods, But if you include services in the trade balance, the U.S. has big surplus with Europe.”
  • According to the Census Bureau, the European Union had a $101 billion trade surplus in goods and services with the U.S. last year and a $30.3 billion surplus in the first quarter of 2018
  • Trump said that if the EU drops its “horrific barriers & tariffs on U.S. products going in, we will likewise drop ours,” but that he would otherwise “tax cars.”