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Spain's exporters worry about Trump's protectionist policies, but government sees it as a lucrative opportunity
Saturday, January 28, 2017 @ 9:01 PM

SPAIN'S export sector is becoming worried about US president Donald Trump's protectionist policies, fearing it could cost them trade.

Franchises and concessions are less affected, since they are deeply-rooted into the business fabric in the United States, but other industries, such as that of renewable energy, foresee problems ahead – especially given the president's approach to environmental issues.

The USA is Spain's main non-European trading partner and sixth-largest export destination, behind France, Germany, Italy, the UK and Portugal, and the North American country accounts for over €10 billion of Spanish companies' overseas trade.

Most goods the USA imports from Spain are food and drink items, renewable energy, motor parts and vehicles, and other semi-manuifactured produce.

But the Spanish government remains optimistic about how future trade relations with the united States may pan out: economy minister Luis de Guindos is confident that the European Union could even benefit from an increase in protectionism across the pond, since the old continent would be able to attract investments from countries which cease or reduce trading with America.

As the international director of Spain's Chamber of Commerce, Alfredo Bonet, says, investors and importers seek stability in their trade partners and, if the USA puts up too many obstacles, the EU bloc could be seen as a viable alternative.

Bonet, however, says Spain and Europe will have to wait to find out 'how Trump's words will translate into reality', since any threat to or reduction in cross-border trading may be a concern but 'not just anything is possible' due to World Trade Organisation (WTO) rules which limit increases in customs duty to its members.

Read more at thinkSPAIN.com



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