Musk suggested a zero-tariff zone between the US and Europe. Is it a fantasy or a policy of the century?
Recently, Musk made a major proposal in Italy - to build a zero-tariff free trade zone between the US and Europe. This statement instantly caused a stir in the two major fields of traditional economy and cryptocurrency.
Musk ambitiously stated that the US and Europe should create a zero-tariff zone to achieve the free flow of talent and capital, and took the EU standardization system as an example to emphasize its role in promoting open innovation. Although it is only a proposal and the details are not clear, the expectation of zero tariffs alone has aroused strong market attention. In 2024, the scale of US trade will exceed 1.1 trillion US dollars. The reduction in tariffs will significantly reduce corporate costs, weaken market tariff barriers, and create favorable conditions for direct exports in various industries. The cryptocurrency field has also smelled potential dividends.
The digital industry is extremely sensitive to trade liberalization, and the liberalization of US-EU trade is a major benefit for cryptocurrency. Once the US and European regulations are unified, the compliance costs of encryption projects will be sharply reduced, and overseas business will be smoother. The acceleration of capital flow will promote the rapid popularity of decentralized finance and on-chain finance around the world, and the prospects of Web3 are bright. If the United States and Europe use the British pound as a reference to achieve global interoperability at the application layer, companies will gain more development opportunities in both places, financing efficiency will be greatly improved, and talents and capital will also accelerate the gathering of the United States and Europe, consolidating their position as innovation centers.
However, this concept is currently only in the verbal advocacy stage, and there is no formal policy document to support it, and it faces many challenges in implementation. There are many cases of similar agreements that have failed in history, and the political risks are quite high. Regulatory barriers and different voices in the industry may lead to delays in plans, and even difficult to achieve by 2027.
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