European capitals have hardened their attitude to trade negotiations with Donald Trumphttps: //www.skai.gr/tags/ntonalnt-trampinsisting that the United States must immediately abolish the EU duties as a prerequisite for any framework agreement before the upcoming July 9th deadline.
Trade Commissioner Maros Shefcovic has been ordered to follow a tougher line on a trip to Washington this week as Brussels are trying to eliminate or at least substantially reduce Trump’s duties in long -term horizon.
As the Financial Times notes, the Washington He has suggested in Brussels that he is more likely to follow the same tactic as trade consultations with Britain, in which some duties will remain in force while the talks continue, according to European officials.
EU member ambassadors asked Sevcovic on Monday Insist that any agreement includes, as of July 9, reductions in the existing “mutual” duty of 10%, according to the same report. They also demand reductions on the higher duties imposed in specific areas.
In the case of Britain, US duties in cars and steel remained for several weeks after the initial agreement to allow the implementation of lower or even zero duties.
The 27 EU Member States found it difficult to present a common front during the talks. But the President of the European Commission, Ursula von der Layenasked the leaders at the summit on Thursday to approve a tougher stance, according to the same sources.
All the potentials remain likely, sources said, including the collapse of negotiations, which could lead the US to reinstate the 20% duty in force in April or even to 50%, as they had threatened in May.
Another person with knowledge of the situation said that the EU remains divided whether it should retaliate, which reduces the US incentive to compromise.
The German Chancellor Friedrich Mertz Called to the Summit for a rapid agreement that will reduce duties in cars. However, this week, the French finance minister said the deadline should be extended in order to reach a better agreement.
Since April, European businesses have been subject to 380 billion euros a year, which accounts for about 70% of total trade.
This includes 25% duties in cars and spare parts and 50% in steel and aluminum.
The US is considering expanding duties to goods such as copper, timber, aerospace components, medicinal products, microchips and critical minerals.
The EU has approved countermeasures of 21 billion euros to US exports, but has frozen until July 14th. The European Commission is preparing a new duty package of 95 billion euros.
Maros Shefcovic will have talks on Thursday with US Commerce Minister Howard Latnik and US Representative Jameson Green.
They will discuss a “duplicate plan of agreement in principle” by the US, which covers not only trade of goods but also “non -tariff barriers”, such as digital regulation and food and products standards.
According to the Financial Times, Washington prioritizes such agreements to avoid imposing higher duties, but it is expected that 10% of duties will remain in force during talks.
“We are completely focused on a positive result,” Sefcovic said.
“It’s always good when we can go through the exchange of views at the pension stage,” he added at a press conference on Monday.
Analysts in Washington estimate that the president, reinforced by the success of the agreement with Britain and the temporary truce with China, is likely to harden his attitude.
“The EU seems to approach this process as a commercial negotiation, which would be a colossal mistake. From the US view, it looks more like negotiation on terms of surrender, “said Ted Murphy, a legal adviser to commercial affairs at the Sidley Law Office in Washington.
Source: Skai
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