MNI: EU Vote On EU-U.S. Trade Deal To Be Delayed

The European Parliament looks set to delay until January a vote on the EU-U.S. trade deal agreed at the end of July, in order to allow the furore over the new U.S. security strategy to cool.

Parliamentary sources told MNI that there was a strong feeling in the assembly that the deal would get "blown up" if the vote in Strasbourg is held next week, as had been previously expected.

"There is a strong feeling that the Americans are treating Europe unfairly," one source said, referring to the security strategy, which many MEPs see as a demonisation of Europe. 

The centre-right EPP bloc's dealings with the far right are also souring sentiment in the Socialist and Green groups, making the chances of a vote in favour of the deal this month even dimmer.

TACTICAL DELAY

At the same time, the EPP is said to be firm in its determination to approve the EU-U.S. Joint Declaration at some point soon and is confident that a short tactical delay can help lower the temperature. 

While tensions have been building on the U.S. side over what they see as EU tardiness in introducing zero tariffs on U.S. exports, EU sources say that the Americans are coming round to some of the bloc's key demands, most notably its call for a reduction in U.S. tariffs on 400 different types of speciality steel to 15%. 

Sources point out that some EU-based U.S. firms are finding the current tariff level of 50% highly problematic, making their inputs into key U.S. supply chains, such as those for auto manufacturing, significantly more expensive. 

"A lot of American companies in Europe which are losing out reached out to the U.S. Trade Representative (Jamieson Greer) and he is working on it. "

COMPROMISE

Lobbying pressure from these firms could eventually pave the way for a EU-U.S. compromise although an EU delegation headed to Washington this week looks unlikely to make an early break through in the talks. 

These discussions are focused on EU digital regulation concessions for the U.S. tech sector while the EU continues to push for tariff exemptions on wines, spirits and on some big food categories.