MNI BRIEF: EU Sees U.S. Trade Framework Deal In Days

The European Commission has told member states there could be a framework trade agreement with the U.S. "within days," though a more comprehensive agreement would have to be negotiated later and would require EU countries to provide a new mandate to officials, an EU diplomat said on Thursday. 

An agreement in principle could be reached by Monday when EU trade ministers are due to meet, the official said, adding however that trade relations with the U.S. are likely to stay "unpredictable and fragile.” A framework agreement would only mark the start of the negotiation of a "real deal,” the official said.

Trade ministers' talks on Monday should focus on how to compensate for the deterioration in EU-U.S. trade by diversifying trade relations with third countries, like South America's Mercosur, the official said. (See MNI: EU-US Deal Hinges On Rule Exemptions Vs Market Access)

"We will have increased tariffs and it will negatively affect trade between the EU and U.S.”