OR European Union is now investigating a wider set of possible countermeasures Against the United States, according to EU diplomats as the prospects for an acceptable trade agreement with Washington are weakening.
An increasing number of EU members, including Germany, is now considering use of wide ‘anti -coercion’ mechanisms, which would allow the block to target US services and other areas in the absence of agreement, diplomats say.
The European Commission, which is negotiating trade agreements on the part of the 27 -member block, had appeared to be on the right track for an agreement in which the EU would continue to face 10% of the US in most of its exports, with some concessions. However, these hopes seem to disappear now, after President Donald Trump’s threat to impose a 30% duties by August 1st and after talks between EU Commissioner. Maros Sefcovic and his US bonds in Washington last week.
Sefcovic, who has said a 30% duty would “prohibit” transit trade practically, delivered a report on the current situation to EU envoys on Friday, Reuters told Reuters.
Their US counterparts had resulted in divergent solutions during his meetings, including a basic percentage that could be well above 10%, EU diplomats added.
“Every interlocutor seemed to have different ideas. No one can say (to Sefcovic) what would actually fly to Trump, “one diplomat said.
The prospects for relaxation or lifting of US tariffs of 50% in steel and aluminum and 25% in cars and car spare parts seem limited.
‘Nuclear choice’
Washington also rejected the EU’s request for a “standstill” agreement, which would not be imposed on further duties after reaching an agreement. The logic, according to diplomats, is that Trump’s hands cannot be tied to national security, based on research under Article 232 on the trade of pharmaceuticals, semiconductors and timber.
Therefore, the climate has changed between EU countries, they say EU diplomats, and are more ready to react, even though a solution through negotiations is their preferred choice.
The EU has a package of tariffs on US $ 21 billion -worth US products that has currently been suspended until August 6th. The block must also decide on a further set of countermeasures to US exports worth 72 billion euros.
Discussions have also increased on the use of the wide range of EU “ACI” (ACI) mechanism (ACI), which allows the block to retaliate against third countries exerting financial pressure on the Member States to change their policies.
If it is more implemented in China, it will allow the block to target US services, limit US companies’ access to public procurement or financial services, or limit US investments.
France has consistently supported the use of ACI, but others have opposed what some see as a nuclear choice. Trump has warned that he will retaliate if other countries take action against the United States.
European Commission President Ursula von der Laien said a week ago that ACI was created for emergencies, adding: “We haven’t arrived there yet.”
Source: Skai
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