MNI: EU States Broadly Back EU-U.S. Deal - Officials

European states broadly accepted the terms of the weekend’s EU-U.S. trade deal, officials told MNI on Monday following a meeting between diplomats and the European Commission earlier today. 

France was alone in describing the deal as a "surrender,” saying a tougher negotiating style by the Commission earlier on could have proved more effective. 

France's problems with the deal may flow from the failure to reach agreement on wine and spirits, though the aircraft sector, also important to the country, won an exemption. (See MNI SOURCES: Markets Overplaying ECB's Hawkish Shift)

The list of exempted sectors also met with solid support from countries, although tariffs on pharmaceuticals and microchips are still subject to the outcome of a US 232 security investigation. 

AMBIGUITY

But member states expressed concern in some areas, including ambiguity on enforcement and over the upcoming negotiation of quotas for steel. The EC's stated view that 15% is a maximum tariff is another potential problem, given the U.S. has yet to confirm that. 

There was also some worry among states that the use of faster and more flexible implementation methods, such as “autonomous legal instruments”, to implement the deal, rather than a lengthier national ratification process, may leave the EU open to legal challenge from firms and industries which lose out.  

Diplomats were also sceptical about the EU's commitments to purchase large amounts of U.S. energy and pledges of big investments into U.S. industry, which many viewed as unrealistic and difficult to enforce.