MNI: EU Plans New US Trade Deal Offer To Open "Serious" Talks

The European Commission is preparing a new trade proposal to the U.S., with more details on ways to lower trade and non-tariff barriers and on how to boost investments within the U.S. as well as purchases of U.S. goods such as liquified natural gas and semiconductors for use in AI, a document obtained by MNI showed on Thursday.

The offer would be a bid to open "serious negotiations," according to a briefing note of discussions between the European Commission, trade officials and trade ministers over the course of this week. 

But in other comments, the document stated that the EU remains "worried that talks with the U.S. so far follow the example of U.S.-UK and U.S.-China - quite hollow in substance, broad lines, big words and just variable upper and lower limits." 

"There is still a lack of clarity of the U.S. positions and landing zones," the note said, comparing these unfavourably to its own EUR95 billion package of threatened countermeasures to the U.S, which runs to over 200 pages. The latest U.S. letter "continues to provide little clarity and makes demands that the Commission sees as unrealistic (i.e. non-tariff barriers like VAT),” the document stated. (See MNI: EU Countries See US Shift In Tone But Trade Deal Unlikely)

UK DEAL A CONCERN

"The agreement with the UK is also of concern," it said, "as it contains the commitment that goods liberated from tariffs (cars mainly) or reduced tariffs, should not contain Chinese supplies or elements."

The paper also cites concerns that while EU Trade Commissioner Maros Sefcovic is meeting with counterparts like Commerce Secretary Howard Lutnick next week, it is Treasury Secretary Scott Bessent who is the person within the Trump administration who "calls the shots."

"On a positive note, the U.S. seems ready and inclined to negotiate," the document said.

The statement concludes by saying that the EU has chosen the "slower path" to a trade deal with the U.S. 

"Tactically, the EU has chosen a slower path - not for a short-term political win - but a more solid, long-term one. The Commission believes (and member states share) that given the EU's weight in U.S. trade it has more leverage compared to the UK, and it looks like the U.S. market situation is playing into the EU's hand as there are already signs  of shortages in the U.S. supply chain."