MNI: EU States Doubt US Will Accept Trade Offer-Officials

European Union states are sceptical of the chances of the latest European Commission trade and tariff offer being acceptable to the U.S., according to feedback from discussions between the European Commission and member state diplomats detailed to MNI by officials.

The offer submitted early this week includes a gradual reduction of tariffs to zero on both sides for non-sensitive agricultural products and industrial goods, even though member states regard this as unrealistic given the terms of the U.S.–UK deal and ongoing U.S.–China trade talks. It only attempts to define the scope of future negotiations, while discussions continue at a technical level with the aim of a political-level meeting in early June, officials said. (See MNI: EU Countries See US Shift In Tone But Trade Deal Unlikely)

COOPERATION

While the European Commission has tried to address U.S. concerns over international labour rights, environmental standards, and economic security, it skirts non-tariff barriers identified by the U.S. such as VAT, phytosanitary and digital regulations. Additional proposals include mutual investment, strategic procurement cooperation in areas such as energy, AI and digital connectivity.
Other elements of the package cover food and agricultural standards, mutual recognition agreements, public procurement, digital trade, and rules of origin – all aimed at safeguarding mutual EU and U.S. interests.
The proposal suggests areas for cooperation, such as export controls, investment screening and joint efforts to tackle overcapacity in the steel, pharmaceuticals, automotive, and semiconductor sectors, and puts forward the concept of a joint market for critical raw materials. These proposals are aimed at addressing the challenges posed by China, without explicitly naming that country.

EU Trade Commissioner Maros Sefcovic will hold a call with U.S. Trade Representative Jamieson Greer later on Friday.