Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

EU debates when to start trade talks with Trump

Published 02/22/2019, 08:50 AM
Updated 02/22/2019, 08:50 AM
© Reuters. U.S. President Donald Trump and President of the European Commission Jean-Claude Juncker speak about trade relations in the Rose Garden of the White House in Washington

By Philip Blenkinsop

BUCHAREST (Reuters) - European Union ministers began debating on Friday when to start trade negotiations with the United States, aware that U.S. President Donald Trump may impose punitive tariffs on EU car imports if they wait too long.

The European Commission has asked the EU's 28 countries to approve two negotiating mandates so that formal talks can begin.

Diplomats say Germany, whose exports of cars and parts to the United States are worth more than half the EU total, wants to press ahead. But France, with very few U.S. car exports, is reluctant to move before the European Parliament election in May, convinced that dealing with Trump is not a vote winner.

"We need to start negotiating," EU Trade Commissioner Cecilia Malmstrom told reporters before Friday's meeting.

It made sense to wait for a vote in the European Parliament on the issue in March, then move quickly, she said -- a matter of weeks, not months.

French junior minister Jean-Baptiste Lemoyne agreed on waiting for the non-binding parliament vote but did not share Malmstrom's sense of urgency.

"The leaders will meet later. For the moment, it's a first political discussion. It's clear there could be more to come," he said.

German Economy Minister Peter Altmaier said he was not aiming to "rush something through". His Austrian counterpart Margarete Schramboeck was more forthright.

"I expect from all the countries to give a mandate to the Commission... so that the Commission can negotiate and not hold back because my car industry, maybe in France or one other country, is not as affected as much as in another country."

The United States and Europe ended a stand-off of several months last July, when Trump agreed to hold off on car tariffs while the two sides looked to improve trade ties.

They committed, among other things, to work toward removing tariffs on "non-auto industrial goods".

The EU is looking now to start negotiations on tariff reductions, possibly including cars, as well as a separate set of talks on making it easier for companies to clear their products for sale on both sides of the Atlantic.

Industrial good tariffs are already low, at around 4 percent. However, the Commission has said that removing them would boost EU exports to the United States by 8 percent and U.S. exports to the European Union by 9 percent by 2033.

The United States has a wide-ranging wish list, including comprehensive agricultural market access. EU unwillingness to include farm products could set it on a collision course with Washington.

© Reuters. U.S. President Donald Trump and President of the European Commission Jean-Claude Juncker speak about trade relations in the Rose Garden of the White House in Washington

Friday's gathering is billed as "informal", meaning no official decision will be taken. Malmstrom said this could occur at any subsequent formal meeting of national ministers.

Latest comments

EU must hurry. After China which is near end, EU will lose more leverage. One by one, Trump will get what he is asking for. Canada, Mexico, South Korea, and China... done. EU is next and no where to run or hide.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.