EU Trade Minister Says Ag Is Not on Table
Trade talks have not yet begun between the European Union and the U.S., but EU Trade Minister Cecilia Malmstrom told reporters Jan. 9 after a bilateral meeting in Washington with U.S. Trade Representative Robert Lighthizer that the two "took stock" of where the working group is.
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Sen. Chuck Grassley, the new Senate Finance Committee chairman, has said that a trade deal limited to industrial goods is ridiculous (see 1812210026). But Malmstrom said the view of the EU on the scope of talks has not changed. "We have been very clear from the EU side we are not going to discuss agriculture, as on the American side they will not discuss the Jones Act, Buy America, public procurement, geographical indications."
The areas that are excluded from talks are ones "we had difficulties overcoming already in [the Transatlantic Trade and Investment Partnership] so that's why we proposed something that could be quite easily done, which is industrial goods, which would be beneficial from both sides," she said. The TTIP talks lasted three years (see 1609260023), and foundered on agriculture, government procurement and other issues.
When President Donald Trump and European Commission President Jean-Claude Juncker announced the two sides would begin talking, autos were excluded from the agreement, but Trump said the EU would be spared auto tariffs as long as talks were progressing. Malmstrom said she and Lighthizer didn't discuss auto tariffs, adding, "we are under the assumption we will not be affected ... as long as we are talking and trying to find common positive ground there would be no new tariffs."
Malmstrom also is meeting Jan. 9 with Lighthizer and her Japanese counterpart to talk about how the World Trade Organization could address some of the market distortions from China. Malmstrom denied they are building a coalition against China. "We're discussing industrial subsidies, forced technology transfers," she said. "We are worried about many of the Chinese practices." She said the hope is the three parties can draft rules that they can then share with other WTO members "in order to update the WTO rulebook."