MNI: EU-US Joint Trade Statement Seen Lacking Key Detail

The European Commission is hopeful a joint statement with the U.S on their July trade deal can be finalised by as early as later on Thursday, but EU officials said the document may lack important detail regarding key sectors.

The statement will not deal with cars, which will remain a contentious issue with the current tariff rate of 27.5%, sources said. One source following talks said it remains to be seen whether EU pharma and semiconductors will be tariffed at 15% once the current 232 security investigation is concluded, as per the terms of the July 27 deal. 

Clarification of the pharma point was the main issue in a recent exchange of draft statements between the two sides, with President Donald Trump publicly threatening much higher tariffs on the sector.  (See MNI: US Pushes EU For More Concessions Despite Deal- Officials)

A source told MNI that there was "no full clarity" that pharma and microchips would be charged at 15% and that the statement would not deal with cars "for sure".

The EU also seems to have failed to get an exemption for wines and spirits, which will now carry a 15% tariff. The sector was previously exempt from tariffs and this will be a big disappointment for France and Italy. The European Commission will continue to push for exemptions for specific spirits, sources said.

EU diplomats will meet on Thursday to discuss the latest version of the joint statement and whether to accept it or push for better terms.