Starting from a broader perspective, after sagging in November, overall retail demand across the 27-member European Union finished the year with a whimper, rebounding a modest 0.5% in December from twelve months earlier. Indeed, only 9 of the 27 retail markets across the bloc saw overall retail demand expand in December from a year earlier, led to the downside by sharp declines in Slovenia (down -13.3%) and Bulgaria (-12.0%). At the same time, retail demand across Ireland (up 11.1%) and second-largest economy France (+9.1%) surprised to the upside, partially offsetting the continent's overall downshift.
The European Union unveiled on Thursday what it called a new, more assertive foreign trade policy that signals greater cooperation with Washington and warns of unspecified measures it reserves the right to take against China to blunt “negative spillovers” from the approach Beijing takes to trade and investment.
The regional bloc announced its “open strategic autonomy” as a way to cope with challenges including climate change, “greater recourse to unilateralism”, and the economic consequences of the Covid-19 pandemic. It also made reform of the World Trade Organization (WTO) and stronger partnerships in Asia and Latin America key priorities.
Reflecting Year-to-Date Shipments through November 2020
Footwear imports entering the European Union sagged again in the latest month, falling year-over-year both in euro terms (off -10.9%) and in volume terms (-15.5%), cementing long-held prospects for sharp full-year declines. First, at just €3.51 billion, the value of footwear entering the EU retreated on a year-over-year basis for the ninth straight month in November. The value of imports from key suppliers China (off -25.5%) and Vietnam (-21.6%) sank from twelve months earlier, lower for the ninth straight month from both key origins. Given the recent declines in the euro value of imports, we maintain our long-held outlook for the full-year value of footwear shipments into the region will retreat sharply from the 2019 record.
Biden’s ‘Buy American’ Push Could Break International Trade Commitments, European Official Says
President Joe Biden’s “Buy American” plan to revitalize the country’s manufacturing “backbone” could be breaking international trade agreements, Europe’s top trade official hinted Thursday, who vowed to monitor whether forcing federal organizations to buy locally unfairly locks out international competition.
Valdis Dombrovskis, the trading chief for the world’s largest trading bloc, told reporters that directing federal authorities to preferentially use American contractors could breach World Trade Organization rules governing public procurement.
