Tone of global trade talks changes after US-EU meeting
26/07/2018
At the end of their meeting, they said in a joint statement that they were launching a new phase in the relationship between the US and the European Union. They described it as: “A phase of close friendship, of strong trade relations in which both of us will win, of working better together for global security and prosperity, and of fighting jointly against terrorism.”
This follows months of heightening trade tensions between the US and most of its key trading partners, including the EU, and the threat and imposition of new tariffs and counter-tariffs.
Together, the July 25 statement pointed out, the EU and US count for more than 50% of the world’s gross domestic product and the two presidents said they now want to “team up” to make the planet “a better, more secure and more prosperous place”.
They agreed a joint agenda, as part of which they will work together towards zero tariffs, zero non-tariff barriers and zero subsidies on industrial goods, except industrial goods relating to the automotive industry, while eneavouring to increase trade in services, chemicals, pharmaceuticals, medical products and (curiously) soybeans.
Other elements on the agenda relate to energy and to launching “a close dialogue on standards” to reduce obstacles to trade and slash costs.
Finally, they agreed to work together to protect companies in the US and in the European Union from unfair global trade practices and said they would work with like-minded partners in other parts of the world to reform the World Trade Organisation. “While we are working on this, we will not go against the spirit of this agreement, unless either party terminates the negotiations,” they said.
Almost as an after-thought, they said they will also attempt to resolve the tariff and retaliatory tariff issues surrounding steel and aluminium that sparked the whole global trade dispute in the first place.
EU president, Jean-Claude Juncker (left) at the Washington meeting with his US counterpart, Donald Trump.
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