- 2025-09-24 “That is the enterprise. And that will ensure that the market in Europe does not run any risk of being overwhelmed by unfairly cheap imports from the US. It should also be noted that the US are not large players in international trade of those goods. They are, in fact, the US are in fact sizeable net importers from the world. Now going to article two, we here propose to establish 20 tariff quotas for a number of agricultural, fish and processed agricultural products. That is very important to note. This is not full liberalisation. It is only for a certain amount. And these products, these 20 tariff rate quotas, can be broadly divided into three categories. First, um, there we have liberalized um, a number of uh, we have given. Sorry. We've given to, uh, a number of products where current MFN tariffs are low or even very low, and therefore the liberalization offered within this quota is not problematic. And this concerns ten trqs, namely the quotas from 5 to 13 and number 17. And for these goods, it's important to note that the proposed trq volumes cover basically what we already exist, uh, what we already import from the US. Um, but there are two exceptions. That's, uh, Alaska pollock and soybean oil. But on those two goods, what we're actually seeking now, for the moment, are to diversify our sources of imports.”
Import of agri-food products in the EU · EU-US trade relations
- 2025-09-24 “For example, for Alaska pollock. We want to diversify away from Russia. Secondly, uh, there's a second group here, and that's products where current MFN tariffs are quite high, but they are not prohibitive. And those concerned 60 accused and they concern notably processed agricultural products and cover up. And those are the quota numbers 14 to 16 and 18 to 20. What's important to note here is that in terms of quantities that we're offering here, these constitute just between 1 to 5% of what the EU actually exports to the world. And you should note that the EU is in fact the largest world exporter in all these categories, and a very substantial net exporter both to the US and to the world. So we do not expect a major market impact in Europe either. Now, the third group of Trqs are the products where there is a high out-of-quota MFN tariff. And in these cases, um, we offer tacos, which are of course very valuable for US exporters, but they are modest in relative terms. When we compare that to the EU market or to our US exports to the world. They in fact represent 0.1% of the EU market, or a mere 1% of what we actually export to the world. In each of these goods. And that concerns cheeses, fresh dairy and pork. Um, again, as for the previous category, it should be noted that the EU is the largest world exporter.”
Export of EU agri-food products · EU-US trade relations
- 2025-09-24 “Exemptions. We believe that that is something, uh, that is in the interest both of the US and of the EU. The decision on that is very much on the side of the US, and we must recognize that the US has taken a number of decisions which we feel if we would take some of the measures like that would hurt our economic sectors. But, uh, and given the fact that the US has now to a certain way, now has stepped back from its WTO commitments, uh, we we need to take that into account when we seek, uh, to have further exemptions, further exemptions which which would reflect which should reflect interests across the EU and across sectors. We hear that some members are underlining the area of wines and spirits and other things. Um, but, uh, we believe that we need to be careful to ensure that it reflects all sectors in the sectors in a balanced manner. Now, um, WTO, the compatibility, Ability. I think what I want to do, their chairman, is to say that while it is true that the US has stepped back from its WTO commitments, I think that underlines the need for us to maintain our attachment to the WTO and to rules based trade. And we should see that as an opportunity to strengthen our alliance with other countries who feel the same, who have the majority of their trade with countries other than the US, or even those who have the majority of their trade with the US.”
EU-US trade relations
- 2025-09-24 “Uh, for example, for pork and cheese and notably, uh, to the US. In fact, we export 140,000 tons of cheese to the US, uh, last year, and we exported 77,000 tons of pork. So even in case, uh, the US does fill and use the whole potential of these quotas, we do not see that there's a risk for market disruptions. Now, that is as far as concerns the tariff concessions that we're offering. Let me now rapidly turn to the, uh, suspension clause under article three. And you can see that we propose four scenarios in which we would be able to, uh, react and suspend, uh, if necessary, quickly because we propose to do that through the comitology procedure. The first scenario is a suspension directly related to the joint statement. And that would be triggered in case the US does not live up to its commitments. The second scenario expands the scope for acting when there's already a threat that the US may not follow through on its part of the deal, if it's clearly signalled. The third scenario is a safeguard like measure which we would be able to trigger in case of the surge of imports. And the last reflects that, the fact that we also propose that we should be able to act in cases not covered by the first three possibilities for suspension, but in case that there is a fundamental change of circumstances, uh, that we consider has taken place.”
Export of EU agri-food products · EU-US trade relations
- 2025-09-24 “And we propose to extend it slightly to processed lobster. If you look at that proposal, there are also safeguard measures. Sorry. There's also suspension measures, but there is no safeguard measure. And the reason is that we do not expect that, uh, this could be a risk given the size of the market, the market conditions, uh, and the and the possibility to sell lobster in Europe. So this is now on on on on on on your table. Uh, chairman, it's on the table of, of of inter and, um, we you will now consider it, but I think, uh, when you consider it, I would urge you to take into account, uh, the four reasons why we believe that, uh, this is something that the EU should proceed to. Um, it is a concession. Um, but it was given in a special situation. I think it was quite clear that the alternative would have been very problematic, a possibility of very, very high tariffs, a possibility of a transatlantic trade war that could have spun out of control. Um, and returning to the previous status quo was was clearly not an option. Secondly, I think with this deal with caps and tariffs in many on many EU products, on the vast majority of EU products at 15%.”
EU-US trade relations
- 2025-09-24 “And this is a well-established general law principle. Now looking very rapidly at, uh, at the economic impact, um, we think, uh, they are very valuable. They are not, uh, something that that, that really cause or would risk cause any disruptions to the EU market. The overall budgetary loss for the EU budget is estimated at €3.6 billion per year. Um. That is corresponding to around four point between 4.7 and 4.9 billion of overall duties for Ghana. If we look at the overall value of the agrifood, subject to improvements, that tariff opening up or the volume that we are talking about, that the EU, sorry that the US would possibly be able to, uh, to export is 4 billion, but 90% are subject to quotas. Um, and the remaining 400 million of uh, of EU, uh imports in this area would be subject to duty free quotas. But 90% of any concessions that we're giving are non-sensitive agricultural products is covered by quotas. Uh, importantly, again, as I said, uh, the relative value of these additional trqs in comparison to the market, our exports are quite limited. Now rapidly before I conclude. This brings me then to the second proposal by the commission. That's the extension of the lobster deal. Um, I think I can be very brief here. The main purpose of this regulation is to extend something which is already in force. Uh, it's to, uh, is to extend the 0% preferential, uh, well, the de facto preferential treatment, but it's actually it's actually on an MFN basis that was already in place until the 31st of July as part of the first, uh, lobster deal.”
Import of agri-food products in the EU
- 2025-09-24 “What? Uh, it, um, what it has, uh, committed to to a very large degree. Um, we we need to just today, we have the, uh, administrative measures which have been issued by, uh, the, by the US, um, resulting in the retroactive application of, uh, of of of of car tariffs of 15% from the first of uh, of August and the list of exemptions of goods which are only subject to MFN. Now it's just come out. We need to look at the details to be sure that it is absolutely, uh, covers what we have agreed to, what we believe is covered. And that is clear. We will need to continue to monitor very carefully. Uh, whether the US is, uh, is sticking to its side of the of, of the bargain and that also but we also have another hook in the, uh, in the, in the joint statement and in on steel and aluminium. We will need to engage on that to try to get back to the situation of normalised trade in steel and aluminium across the Atlantic, or at least a system like we had before. We have a hook for that. And as you know, we will publish a steel, uh, strategy. Uh, and that is the basis upon which we will engage with the US to, uh, to, to to get an agreement on this, uh, on this, on this issue. Um, I, I also hear, um, the requests for, uh, a productive, uh, further process for, um, for, for exemptions, uh, further exemptions.”
EU-US trade relations · EU policy on custom fee on non-EU imports
- 2025-09-24 “Um, it is, uh, our clear view that the spirit of the agreement was to provide a strong measure of certainty and stability, um, and that, um, it cannot be that we end up in a situation where there, uh, is more than changes at the margins. I mean, there are a number of two, three, section two, three, two, uh, investigations out there. We knew that they weren't going. We knew that they would, uh, have, uh, maybe some impact on EU exports, but but the trade volumes were quite limited. What we cannot have is a hollowing out of the agreement to have a certain amount of, of, of stability and predictability. On the other hand, I would also say we are still in the implementation phase we're discussing with the US, and we do hope that what we are encountering here, uh, are teething problems, uh, in relation to how things are being implemented. And we are taking it up, uh, at the political and the, uh, technical level, um, will, I think strong arguments and will the clear message from our side that this is something that is of real concern at the political level, uh, here in, in the EU, including at the level of, uh, the co-legislators who are now looking at how we will implement our commitments. Now, the US has in fact Implemented.”
EU-US trade relations
- 2025-09-24 “Um, it is true that the US is our most important trading partner. It's 17% of our trade, but it is also true that 83% of our trade is with other trading partners, and we should maintain that very strongly and be very attached to, uh, have rules. Trade takes place with these countries on a rules based, uh, on a rule on the basis of rules, whether they are on the basis of FTAs or whether they are WTO based. So, so I think, um, we need to we need to we need to try to step up there and continue the work on WTO reform and have a successful as possible next ministerial. Um, now. I think what I think what we have tried to do, I also hear, um, that we are trying to portray it in a very positive manner. I think what I have tried today, today and what we have tried to do our through our factories is to provide you a very sober message. This is a count. This is a nature of the ghq's we have given. This is the amount of tariffs foregone. Um, yes. There are some forgone tariffs. Uh, but, uh, that is always the case when we make trade agreements, there are always foregone tariffs or duties foregone in other areas. We have duty income.”
EU-US relations · EU-US trade relations
- 2025-09-24 “Thank you much. Thank you very much, chairman. And and indeed some, some some good questions. Um. I think maybe, maybe the, the first broader question of, of the role of Parliament and what you can do. Um, I think we, we presented these proposals, uh, these are the proposals that we think are are the right ones. These are what we what we discussed with the US. And this is how we feel that we should, um, go about giving ourselves the possibility to, uh, suspend in part or in total, and to manage it. But this is a proposal to the co-legislators, and we are, of course, open, very open to work with you to see what kind of changes that would be useful for you in order to get get your support. So I think that's the first question I want to underline before we go in. Before I go into the specific specific issues, um, and the first, uh, question there is indeed in relation to, uh, the extension of, uh, of the steel and aluminium derivatives, uh, duties by, by the US. I must say that, that we have taken very good note of the fact that, uh, this concern has been raised by many of you, by many political groups. It is a concern that we also hear from member states and we hear from stakeholders. And, uh, while on the one hand is clear that the US, uh, retains the possibility to, uh, extend the scope of, uh, the steel and aluminium derivatives in the letter of what we have agreed.”
Carbon Border Adjustment Mechanism (CBAM) · EU-US trade relations
- 2025-09-24 “I mean, for example, in TD, I'm sure that in the space in the bigger picture of the EU budget, we can look at that. And it's also true that our exports will be helped by some of the cheaper inputs that we have and that that will create economic activity. But it is true. Yes, we will have to look at it, but we will look at it in the normal manner that we do when it comes to duties foregone coming from, from from trade policy. Um, I, uh, I, we have heard, I understand, uh, the signals giving on, on, on the use uh, of of the asi. I think we hear you on that. We understand that that is something that is it's a political step, you know that. But but we are aware that this is something that, uh, that you feel that we need to consider that we should keep in our arsenal, and I think that is something that we should evidently do. But for the moment, I think what we are focused on is to implement the agreement, keep the US, uh, to its side of the bargain and ensure that it also implements it, uh, and that, uh, it, uh, and that we monitor that in a, in a, in a, in a stringent, in a stringent manner. Um, I think and I hope that I have covered, uh, all, uh, the questions. Chairman. Thank you very much.”
EU-US trade relations · EU policy on custom fee on non-EU imports
- 2025-09-24 “Thank you very much, chairman. And indeed, we already had a very general discussion in Inter on the 3rd of September. There was also a discussion in the plenary. So what I really want to do today and what you put on the agenda is, uh, is the two proposals and we welcome that you have put these two proposals so rapidly on the agenda of Inter. Um, and I have also had the possibility earlier this week to explain in a technical meeting with, uh, with, with Inter members, uh, the some of the details of the proposal. So we are very appreciative of this rapid engagement. Now, um, as you said, uh, as part of the implementation of the joint statement, uh, on 28th August, the Commission presented to the Parliament and to the Council to legislative proposals. Uh, the first of these legislative proposals concerns the elimination of tariffs on all US industrial goods, uh, and also provides preferential market access for certain US seafood and certain non-sensitive agricultural goods. The second proposal is the continuation of the tariff free treatment, this time on an MFN basis for imports of lobster from the US, and it has also now been expanded to include processed lobster. Now, I would like to focus on this first proposal. That is the proposal for the elimination of industrial and certain agricultural and seafood products. If you look at the proposal, you can see that it is uh, it consists of three operational parts.”
Import of agri-food products in the EU · EU-US trade relations
- 2025-09-24 “Uh, and it also includes, uh, annexes, uh, uh, in the it includes several annexes. Uh, the first operational part that's uh, article one, paragraph one concerns the full liberalisation of tariffs for certain industrial and certain agricultural goods. And they are listed in annex one. Uh, and for clarity, this also includes now goods. Whether tariff is already 0%. I think that's important to keep in mind. Uh, in fact, already two thirds of the goods that we import from the US, uh, are already subject to 0%. The remaining one third of goods concerns US exports to the EU worth €110 billion in 2024, and the average tariff reduction is. Around 4.3%. Some of them are higher, for example, cars, but many of them are also, uh, lower. Um, this also this this, uh, list of full liberalization also includes certain non-sensitive agricultural goods like seeds or some fresh vegetables, uh, or some agricultural goods where the MFN tariff Was already very low. And that's, for example, the case for seeds or sweet potatoes, which only have a MFN tariff of 3%. Now, the second part in this article is the one that concerns the liberalization of certain fruits and vegetable products. And here the liberalization is is partial. And it's because we here keep the EU's enterprise system. So that means that what we do here is that we liberalize the low ad valorem duty of these goods. Um, but the significant specific duties remain in place in case the goods from the US are exported and sold below a certain price.”
Import of agri-food products in the EU · EU-US trade relations
- 2025-09-24 “We do preserve our market access and our competitiveness and our comparative advantage in the US market. And the figures that we have now, uh, for trade flows reflect that, at least until now. Third, uh, this deal provides more stability and predictability. It gives a good measure of stability and predictability, but it also helps us maintain our overall, uh, relationship, uh, which is, of course, much broader than just trade. And I think this these steps that we are taking to stabilize the trade relationship is something that helps also stabilize and fortify our links in other areas. It cannot be seen in isolation. And finally, this deal is a platform for engagement upon which we can build. There's a possibility to extend, uh, the, uh, uh, the, the areas that the US, for example, will, uh, for the goods for which the US will only apply MFN tariffs. Um, we have a platform to engage and engage on steel and aluminium. And that also includes, of course, uh, the derivatives, the derivatives issue. So, um, thank you very much for the possibility to, uh, to, to present this, uh, proposal to you. And we are now looking forward to the process, uh, among the co-legislators moving forward. And I would like you to rest assured that we are at your disposal for anything that you need to help you in this process. Thank you.”
EU-US relations · EU-US trade relations
- “I mean, for example, in TD, I'm sure that in the space in the bigger picture of the EU budget, we can look at that. And it's also true that our exports will be helped by some of the cheaper inputs that we have and that that will create economic activity. But it is true. Yes, we will have to look at it, but we will look at it in the normal manner that we do when it comes to duties foregone coming from, from from trade policy. Um, I, uh, I, we have heard, I understand, uh, the signals giving on, on, on the use uh, of of the asi. I think we hear you on that. We understand that that is something that is it's a political step, you know that. But but we are aware that this is something that, uh, that you feel that we need to consider that we should keep in our arsenal, and I think that is something that we should evidently do. But for the moment, I think what we are focused on is to implement the agreement, keep the US, uh, to its side of the bargain and ensure that it also implements it, uh, and that, uh, it, uh, and that we monitor that in a, in a, in a, in a stringent, in a stringent manner. Um, I think and I hope that I have covered, uh, all, uh, the questions. Chairman. Thank you very much.”
EU-US trade relations · EU policy on custom fee on non-EU imports
- “Thank you much. Thank you very much, chairman. And and indeed some, some some good questions. Um. I think maybe, maybe the, the first broader question of, of the role of Parliament and what you can do. Um, I think we, we presented these proposals, uh, these are the proposals that we think are are the right ones. These are what we what we discussed with the US. And this is how we feel that we should, um, go about giving ourselves the possibility to, uh, suspend in part or in total, and to manage it. But this is a proposal to the co-legislators, and we are, of course, open, very open to work with you to see what kind of changes that would be useful for you in order to get get your support. So I think that's the first question I want to underline before we go in. Before I go into the specific specific issues, um, and the first, uh, question there is indeed in relation to, uh, the extension of, uh, of the steel and aluminium derivatives, uh, duties by, by the US. I must say that, that we have taken very good note of the fact that, uh, this concern has been raised by many of you, by many political groups. It is a concern that we also hear from member states and we hear from stakeholders. And, uh, while on the one hand is clear that the US, uh, retains the possibility to, uh, extend the scope of, uh, the steel and aluminium derivatives in the letter of what we have agreed.”
EU-US trade relations · EU policy on custom fee on non-EU imports
- “Thank you very much Chairman. Thank you for this possibility to intervene in this discussion today and to have heard the interesting interventions and the comments by MEPs. We were in the beginning of this year, and notably in July and August, faced with the situation of the US imposing very high tariffs on imports from countries around the world. In relation to the EU, there was a possibility of a trade war and an escalation in trade measures on both sides which could have spun out of control. In that situation, we took the decision to try to protect and conserve the very strong trade relations that we have with the US and avoid the uncertainty of constant changes in tariffs and threats of tariffs which would have affected all EU sectors including pharmaceutical and medtech sectors. We achieved the deal in this sense and achieved that the US would generally apply a tariff cap of fifteen percent on EU exports and exempt some sectors. Now as regards to pharmaceutical and medical devices sectors, the situation is as follows: for medical devices the cap of fifteen percent applies and as regards pharmaceuticals the situation is currently that there are no additional tariffs being applied. In case there are additional tariffs applied, the fifteen percent cap will also apply to pharmaceuticals. We have in our talks with the US had a very strong focus on pharmaceuticals. So in addition to this cap of fifteen percent, in case the US does apply higher tariffs as a result of the Section 232 investigations that they have conducted, we have also achieved the exemption from these tariffs for certain generic pharmaceuticals and active ingredients and chemical precursors. For these products only USMFM tariffs will apply. Now where are we in the implementation of these steps? The EU has, as you know, proposed a number of two regulations to implement its side of the bargain. We are now waiting for the US to implement its side of the bargain. They have already taken some steps in relation to pharmaceuticals. We hope that the US will rapidly take the steps that they have taken in relation to exempting generic pharmaceuticals. We expect these to happen very soon. It will be taken by USTR and Department of Commerce Federal Register notices which we, as I said, will hope happen very soon. Now this doesn't mean that the work stops. We have the opportunity and possibility in the joint declaration joint statement to continue work to exempt important goods from the US additional tariffs. We will continue to work on this to expand the scope as much as possible and that will of course, that will in relation to pharmaceuticals and medtech try to maintain the absence of tariffs on pharmaceuticals and to include medtech products in the products which the US will exempt from the scope. But this will also, and I must need to stress that this will also need a constructive and productive approach from the US. Thank you very much.”
EU-US trade relations
- “We have launched a public consultation on a new list of potential imports from the US, uh, which is around, uh, €95 billion. Um, you have seen the list of products we have received a number of, of, uh, of of, uh, of comments, both from uh, member states and stakeholders. And, uh, we're also looking at the possibility of, uh, restricting uh, exports to the US, for example, on steel scrap. Um, that, uh, public consultation has finished and we are now analyzing, uh, the results. Just to be clear, um, This is a consultation on goods that we could, uh, look at, but, uh, there are no automatic consequences for the moment. Uh, we are looking at those possibilities, if necessary, and we will continue preparing for further EU measures. Beyond those ones already public. Uh, should this be necessary, as has been stressed by the president of the Commission and by Commissioner Seferovic. All options remain on the table. And what we will do is something that will ultimately depend on the outcome of the negotiations. Um, we are also working on the question of trade diversion. I'm not going into details on that because you will, uh, very soon, right after this session, have a specific, uh, session with DG Dini on the question of the import surveillance task force. Um, so, so you can see we're working very hard, both on, uh, negotiations and on, uh, the possibility of rebalancing.”
EU-US trade relations · EU policy on custom fee on non-EU imports
- “Um, negotiations have therefore intensified and there have been meetings both at political and technical level, and that has included meetings between uh Commissioner Shevchuk and his counterpart, USTR Jameson Greer, and Secretary of Commerce Howard Ludwig. Um, I'm happy to inform you that we have very fluid working relations and communication communication channels, uh, at all levels. Um, the issues are not easy, but the atmosphere of discussions is constructive. I think both sides are trying to convey and make the other side understand what what they want. I think also both sides are aware of the need to try to see how they can meet the wishes of the other side and to maintain an open and constructive approach. Um, what we have done, and you know that because we've been able to debrief you at various instances, is that we have adopted an approach that is at the same time, uh, is ambitious but also, uh, flexible. So we have therefore, uh, for example, flagged our readiness to engage in zero for zero solutions on all or on some industrial goods, for example, on cars and car parts, uh, aviation, uh aircraft, uh, aircraft parts or, or other areas. Um, we have also flagged, uh, openness to work on, uh, those areas which are of particular interest currently in the US, which is some strategic sectors. And we, for example, think that there should be scope to address the question of overcapacity in strategic industrial sectors in a joint manner.”
EU policy on screening foreign investment in strategic sectors and critical infrastructure · EU-US trade relations
- “And that's an important point for us to avoid the kind of uncertainty and risks and the emergence of unforeseen or, uh, or other unforeseen tariffs that we that we have seen has been an important feature in our relations with the US over the last couple of months. So, um, how do we do that? I think we need to try to see, um, there's possibilities to accommodate the US wishes and facilitate more trade across the Atlantic. That is also in our interest. We want to facilitate trade, so we maintain an open mind on this. Um, and we also have underlined that the US should maintain an open mind, um, because they can also do things to facilitate trade and investment across the Atlantic and, um, eliminate unwarranted US barriers at the same time. And I think that's an important point that you raised. Uh, chairman, it's quite clear that there are red lines, uh, for us. And we have made those very clear, um, changes to existing EU legislation, um, which would be the result if we would, uh, accede to some of the issues which have been set out in the American um, um nti report. Um, is is a red line for us. Uh, that's the same when it comes to the question of, uh, For putting the EU's regulatory autonomy on the table. That's not a possibility for us. We have also underlined for the US to understand and respect the institutional set up of the EU, and for them to understand that there are certain things the European European Commission can do, but that we are working in a framework in which we are responsible and we are accountable towards the co-legislators, and that we have a clear and well-functioning division of responsibilities here in the EU.”
EU Single Market harmonisation · EU-US trade relations
- “Thank you, chairman, and thank you for this possibility to to update you on on where we are in the process with the, with the US. Um, I, I've noticed your questions and I hope that I'll be able to answer them in my introductory, uh, intervention. If not, uh, happy to engage in questions and answers afterwards. Words. Um. You know that we have a multi strand approach to, to to dealing with the change in trade relations that we have with the US. What I want to do to do is to focus on the negotiations track and where we are in, in the rebalancing work and of course also touch upon the points. Um, I don't have to touch upon or recall where we are on on the tariffs. You did that just now. The key point is that the risk is that indeed 97% of our trade risks being under US tariffs in one or the other form. We evidently need to try to avoid this. And our priority is therefore to try to find a mutually acceptable and balanced solution with the US through negotiations, uh, before the 9th of July deadline. And what we're doing is that we're working on the basis of the agreement and of May between US President Trump and Commission President von der Leyen to fast track the negotiations on this. The objective is to reach an agreement before the 9th of July, of course, but preferably before since this meeting between President Trump and Commission President von der Leyen.”
EU-US relations · EU-US trade relations
- “Just as the US government is accountable towards the US government. So that doesn't mean that we can look at how US governments may be can comply with our legislation in a, in a in an easier way. But changing them is a clear a red line and I think that you have passed some very similar messages in your recent visits to, to the US, to relevant interlocutors. Um, at the same time as we are trying to work for these negotiations. I think we also have to be clear in our intent and determination towards the US to take steps to protect the EU interest, if necessary. So we are therefore also continuing to prepare for a situation in which the negotiations are not, uh, successful, only partially successful. Um, as you refer to, chairman, uh, there's a possibility that our, uh, rebalancing measures on steel and aluminium, uh, could come back, uh, in, uh, in the middle of, of August. Uh, they're still, uh, suspended, but they could come back if necessary on the 14th of July. And Furthermore, to enable us to, if necessary, rebalance in response to US tariffs on cars and car parts and the universal, uh, 10% tariffs or 10 or 20% tariffs.”
Carbon Border Adjustment Mechanism (CBAM) · EU-US trade relations
- “Now, um, that is, I must say, unsure. And that is why we while at the same time as we are negotiating as vigorously as is possible, we also need to consider the possibility that we will end up in a scenario, very realistic scenario in which the tariffs or some of the tariffs of the US will be, uh, will be maintained. And it's in that context that we continue to prepare for, uh, for a WTO case, uh, so that it is solid. Um, we are certainly also in contact with with trading partners. Somebody asked, well, what are we doing with the Canada? We are. We are exchanging information and and maintaining, uh, contacts there. Uh, and that is the same with other trading partners who are affected by the US and in many ways are in the same situation as us towards the US. Meaning with the, with the, with a level playing field. And of course, talking about countries like Japan, Korea, Australia or indeed, uh, the UK. Now, I think what I also hear from members, and I think that's an important message for me, is there is a very strong support for a deal. Uh, everybody, uh, here in the room would like, uh, to, uh, to have a deal. Um, we, uh, need to be quite careful about, uh, what kind of, uh, damage or impact that terrorists would have on. On, on on the EU and trade with the US.”
EU-US relations · EU-US trade relations
- “That is why I underlined in my intervention that as part of an agreement, we need stability and predictability in terms of what happens in our trade relations. Uh, standstill is a good, uh, is a good is a good word in this, in this respect. I think, uh, we need to to to know what the situation is. Uh, before, uh, or by the time we make a deal, what will happen? What will happen afterwards? It's very difficult. Uh, and will continue to really complicate our relations. If if if that is, if that is the case, uh, if there's not stability. Um, finally, I think, uh, yes. Um, we are also looking at agricultural products. Yes. 040 for spirits is clearly an option. But let me just remind you finally, uh, that, uh, for the moment, we do not have zero for zero. We for the moment, we have 10%. Uh-uh, uh, applied by by the US. How do we, uh, how do we react to that? Uh, trying to go back to to zero for zero situation, But it might necessitate a. Message from our side. And that's why we've included it also in the amount of products that we have put out for consultation in the last in the last round of of of possible countermeasures. Thank you very much.”
Free trade agreements (FTAs) · EU-US trade relations
- “And we propose to extend it slightly to processed lobster. If you look at that proposal, there are also safeguard measures. Sorry. There's also suspension measures, but there is no safeguard measure. And the reason is that we do not expect that, uh, this could be a risk given the size of the market, the market conditions, uh, and the and the possibility to sell lobster in Europe. So this is now on on on on on on your table. Uh, chairman, it's on the table of, of of inter and, um, we you will now consider it, but I think, uh, when you consider it, I would urge you to take into account, uh, the four reasons why we believe that, uh, this is something that the EU should proceed to. Um, it is a concession. Um, but it was given in a special situation. I think it was quite clear that the alternative would have been very problematic, a possibility of very, very high tariffs, a possibility of a transatlantic trade war that could have spun out of control. Um, and returning to the previous status quo was was clearly not an option. Secondly, I think with this deal with caps and tariffs in many on many EU products, on the vast majority of EU products at 15%.”
EU-US trade relations
- “And this is a well-established general law principle. Now looking very rapidly at, uh, at the economic impact, um, we think, uh, they are very valuable. They are not, uh, something that that, that really cause or would risk cause any disruptions to the EU market. The overall budgetary loss for the EU budget is estimated at €3.6 billion per year. Um. That is corresponding to around four point between 4.7 and 4.9 billion of overall duties for Ghana. If we look at the overall value of the agrifood, subject to improvements, that tariff opening up or the volume that we are talking about, that the EU, sorry that the US would possibly be able to, uh, to export is 4 billion, but 90% are subject to quotas. Um, and the remaining 400 million of uh, of EU, uh imports in this area would be subject to duty free quotas. But 90% of any concessions that we're giving are non-sensitive agricultural products is covered by quotas. Uh, importantly, again, as I said, uh, the relative value of these additional trqs in comparison to the market, our exports are quite limited. Now rapidly before I conclude. This brings me then to the second proposal by the commission. That's the extension of the lobster deal. Um, I think I can be very brief here. The main purpose of this regulation is to extend something which is already in force. Uh, it's to, uh, is to extend the 0% preferential, uh, well, the de facto preferential treatment, but it's actually it's actually on an MFN basis that was already in place until the 31st of July as part of the first, uh, lobster deal.”
Import of agri-food products in the EU
- “What? Uh, it, um, what it has, uh, committed to to a very large degree. Um, we we need to just today, we have the, uh, administrative measures which have been issued by, uh, the, by the US, um, resulting in the retroactive application of, uh, of of of of car tariffs of 15% from the first of uh, of August and the list of exemptions of goods which are only subject to MFN. Now it's just come out. We need to look at the details to be sure that it is absolutely, uh, covers what we have agreed to, what we believe is covered. And that is clear. We will need to continue to monitor very carefully. Uh, whether the US is, uh, is sticking to its side of the of, of the bargain and that also but we also have another hook in the, uh, in the, in the joint statement and in on steel and aluminium. We will need to engage on that to try to get back to the situation of normalised trade in steel and aluminium across the Atlantic, or at least a system like we had before. We have a hook for that. And as you know, we will publish a steel, uh, strategy. Uh, and that is the basis upon which we will engage with the US to, uh, to, to to get an agreement on this, uh, on this, on this issue. Um, I, I also hear, um, the requests for, uh, a productive, uh, further process for, um, for, for exemptions, uh, further exemptions.”
EU-US trade relations · EU policy on custom fee on non-EU imports
- “Thank you. Thank you very much, chairman. And thank you for. For the opportunity to, uh, to debrief you and inform you on on where we are. Uh, on on us matters. As you said, this is indeed, uh, a fast moving, uh, issue. Um, I think you also quite well, uh, sketched out in the beginning, uh, in your introduction of, of where we are a lot of, uh, EU trade, uh, is, uh, is being covered by us measures and more may come. Um, so that's why we really are working, uh, along an approach that tries to address all the different issues and tries to pursue the EU interests in a, in a whole bunch of, uh, of ways. So, um, today, what I'd like you to do is to provide you information on where we are on this four track approach towards us. Uh, give you a bit of an assessment of how our talks with the US, uh, are going and also touch a little bit on the UK, uh, and China's deal with us and see what the impact is in, in, on, on our interests. So, um, first of all, uh, we're working, as you said, uh, with a multi-pronged approach for track, uh, four track approach. And that encompasses, uh, negotiations to try to find a mutually beneficial and balanced outcome. It pursues, uh, rebalancing because it might be that we will not get to, uh, to a full agreement.”
EU-US relations · EU-US trade relations
- “And in that case, we will need to to rebalance and adopt countermeasures. We need to strengthen rules based trade and diversify our trade, and we need to take very seriously the risk of trade diversion, which comes from the measures the US is taking and possible measures others are also taking. So on the negotiation track, we are very active with the US. You refer to the fact that the commissioner has been in the US three times. We have clearly explained to the US, uh, what it is that we would be ready to negotiate. We are trying to scoping out the space for negotiating, and we have told the US that we are ready to to work very concretely in, in, in a number of areas. The scope, we believe, for lowering trade barriers on, on both sides in terms of tariffs, um, but also in, in non-tariff barriers, we are all aware of the many non-tariff barriers which the US has imposed on, on, on uh on on EU goods. So if the US is interested in lowering some of our tariffs, we're certainly ready for a conversation that is mutually beneficial. Um, there's a possibility of facilitating increased purchases of US goods, for example, in the area of, of energy, LNG or AI technology. Um, we believe that we should, uh, strengthen the transatlantic investment space. Uh, we should continue to facilitate investment in both directions and strengthen what is already the strongest trade.”
EU-US relations · EU-US trade relations
- “Uh, it's the acceptance of the kind of managed trade that the US has proposed on automotives. Um, they have accepted an increase in tariffs there from the current 2.5% to 10%, uh, from the US side, uh, for 100,000 cars and 25% beyond that. Um, the uh, UK uh has also flagged that, but the language is not enormously clear, but they have flagged that they are willing to accept US conformity assessment bodies, uh, results and also standards as being equivalent to to UK standards. So all that is far from a done deal, and I think we still need to see formal checks or final conclusions. Meanwhile, if we look at the agreement with China, that's something that we understood the US did because they were. Well, I think there was a danger of of empty shelves in the US, maybe empty shelves and maybe empty factories in China. There was also quite a need to to calm the markets, and respective shares have gone down from the A level. There were 145 on the US side and 125. It's not quite clear, uh, how far they have gone down. Um, press reports say 30% and 10%. That is partially true. If we look at it, it's true that, uh, on top of the, 10% universal tariffs from the US, there's a 10% fentanyl tariff doubled the 20% in total.”
EU-US trade relations
- “Um. Uh, yes. Um, when, when. Yeah. Again when it comes to to to to I, uh, I think uh, it's quite clear, you know, we have told the US that when it comes to, to DMA and DSA, there's a respect of, of, of EU legislation which is which is important. That doesn't at all. Exclude that we can work very strongly together on on on on on on artificial intelligence. And one of the things and we have clearly expressed that also towards the US that we appreciate is that the kind of division of the EU into first class and EU countries, into first and second class citizens when it comes to to high end GPU artificial intelligence chips, appears to be off the table. And I think that that is that that is very positive. And that gives us a good, uh, good, good, good basis for working together with, with the US in various areas. And I think that's where maybe I wanted to, to, to reply to, to Mr. Zovko on that. Yes. We think there is a possibility to work with the US on steel and aluminium, on semiconductors, on pharmaceuticals and, and in other areas. So I've been very long, chair, I think, I think I've answered most of the questions. Um, Um, uh. And, um. Oh, no. Yes, yes. The legal challenges.”
EU rules on digital competition · Artificial Intelligence · EU-US trade relations
- “Um, a quick word on the UK, US, uh agreement and its impact on, on, on, on trade between the EU and the UK um and the era of of SPF standards. It is quite general as we've, we've seen yet, but we do feel that when we read this uh, very this, this, this statement that has come out that it is quite clear that the UK's uh. Sps policy, uh, is not up for, for for changes. That is that is how we read it until now. But the devil is in the detail. This is just a framework agreement. We would have to see what comes out of it, but we would be very vigilant to ensure that, uh, the uh, UK, uh, uh, the, the agreement that we have with the UK is fully respected and also that the UK, uh, has respected its WTO, uh, commitments. Um, we have we have a bit of worry and worries in that regard. For example, opening up these new, uh, for example, to, to US exports. Uh, well, who's paying for that? Who's, who's, who's getting less access to the UK market if the, if the US gets more, for example.”
EU-UK relations · EU-US trade relations
- “And, and we definitely think that, that we should, that we should consider imposing tariffs on in this area too. So we have put it on the table. It is very regrettable. There's a whole number of areas. There's also the area of aircraft we have seen where there's where Airbus is now, uh, in a situation in which they if somebody in the US wants to buy an Airbus plane, they will have to put on, they will have to pay 15 million more if the if the price of the plane is 150 million, whereas in the other direction it is not the case. And we've just seen the US launch a section two, three, two investigation in the area of aircraft. So so I think on that issue on aircraft, on bourbon, uh, and on other areas, we will have to very carefully see what the situation is and if necessary, we have to rebalance in order to protect, uh, EU trade interests and our industry and ensure that we continue to be, uh, an important, uh, place to produce, to export, uh, to the US and other areas, and that we don't end up just being a market for. For us products, for example. Thank you.”
Decarbonisation of aviation sector · EU-US trade relations
- “Thank you chairman and I'll be brief in my comments for what has been a very interesting session for us. Maybe I would just simply recall the importance of the relationship that we have with the US in trade and investments but which of course goes much further than that. It's about a trade and investment but it is also about political relations security relations and many other other things. In that context it's clear that the joint statement that we achieved with the US in the summer has brought an amount of stability and certainty at what is clearly and I think I recognize that we all know that is a moment of uncertainty and changes in international relations. I think we have it's very useful to hear the proposals that you have put on the table and the further comments from members of this house. We've taken carefully note of them. I think they clearly touch upon some important issues. We have put on the table what we think would be the best way to go forward but I think we're clearly open exchange and dialogue on some of the issues like the idea of the safeguards the conditions for suspensions and we of course also very concerned and we are paying strong attention to the need to monitor the effects of the agreement. It's difficult to say for the moment because of the ups and downs of international trade but we will continue to monitor carefully the effects of the trade flows between us and we will consider how to address the questions related to the steel and aluminum derivatives issue. It is clearly an important point it is our view and we have continuously made this and we will continue to make that point towards the US that the trade should be in steel and aluminum including the derivatives should be covered by the fifteen percent ceiling and that it should not be subject to any further difficult and burdensome administrative requirements for the sourcing of the steel and aluminum for example. It's a continuing discussion that we have with the US so happy to look at your amendments when they come and then to do our best to help the core legislators reach agreement on this important file because it's important that we clearly show that we are respecting and fulfilling our side of the bargain if we want to hold the US to keeping their side of the bargain too. Thank you.”
EU-US relations · EU-US trade relations
- “Um, that is what our president has stated. We're looking very carefully into that. Um, with all the necessary services from, from from the EU, from the Commission. And we will, uh, if the need comes, if we have to move forward on that, we would come forward with a proposal on that. But we're still working on on this issue. We have not done these things in the past. We have to be very careful that what we do is something that is in our interest and doesn't unnecessarily or disproportionately hurt us. Um, the, um, the, um, the EU, sorry, the US-China deal. Um, I think, uh, the proof of the pudding is in the eating. Uh, this is a very preliminary deal, but in principle, we we welcome it. Uh, one of the key concerns that we have, as Sophia said, was that there is trade diversion, that there's unwanted, uh, number of goods which come into the EU market because they cannot access, uh, the US market. Um, clearly, the barriers that have been put up both by China and by the US were so prohibitive, uh, that that supply chains across the Pacific were, were threatened. They took a step backwards. Still very high tariffs in place, maybe around 50% on some areas, but apparently not completely prohibitive. That's a good first step, but we would hope that there will be further de-escalation between these two trading partners. Thank you very much, chairman.”
EU-US trade relations
- “Yes. Thank you very much. Yes. Thank you very much. Some short comments in addition to what Sophia has said. Well, I will first of all fully agree, and it's a pleasure for me to be here today because we fully agree on the need of a strong single market in order for us to have a strong US trade policy. It's quite clear that our possibility to go forward, be credible, be credible partners, put something on the table and ask for good concessions from third parties. It depends on on the strength of our economy and our single market. The second comment I'd like to make is that indeed we have some time for negotiation, but it's a short time, and that means that we are not at all just waiting. We are fully engaged, both the political and the technical level with the US, to try to make progress in order to get a satisfactory outcome, but that kind of A satisfactory outcome has to be mutually beneficial and balanced. It cannot be an acceptance of the unilateral change in the terms of trade that the US seems to want to to, to achieve. So the deal that we will pursue will be a deal in the interest of the EU, balanced, mutually beneficial. And for that we are willing to engage in a whole number of areas. That's what we're trying to do with the US now. We're trying to scope that out. We're willing and interesting. Interested in discussing, uh, both, uh, tariff issues, um, non-tariff, uh, issues, uh, investment, because we do feel that there's a lot of scope for strengthening trade and investment ties with the US.”
EU Single Market harmonisation · EU-US trade relations
- “Strengthening our supply chains and diminish the dependence that we have both have on on other countries that we do not want. But if it doesn't work out. We will have to be prepared. We will have to take the necessary action to defend EU interests. Um, it is not a question of, uh, of of of just reacting. It's a question of looking very carefully of what the effect will be of us measures on the possibilities of, uh, our goods entering the US market and the competitiveness around the world. So we will proceed, if necessary, to a rebalancing of our trade relations. And you saw that we took a very important step, uh, in by presenting the list of possible products, um, which we could then, uh, submit to import duties on the US. Sorry. On the EU side, those are the 95 billion products of of EU exports that we have sent out for consultation to hear what stakeholders and Member States feel that we could act on. And that also includes, for the first time, the question of possibly imposing export restrictions for scrap or for certain chemical products, which we would need here in the EU or which the US is very dependent on. Finally, a couple of specific issues services. What are we doing about that? Uh, yes, we are certainly looking at how to use that in our effort for pursuing EU interests, either in the perspective of negotiation or of of rebalancing.”
Due diligence in supply chains (environmental and human rights) · Sourcing of critical raw materials · EU-US trade relations
- “We also see that there are a number of countries around the world which still have very, very high tariff levels. We can understand that the US might feel that there's a lack of level playing field, but with us the trade and investment is very open in both directions. So, um, but still we see that the US has, has, has, has wants to change the trade of terms with us, uh, and that they, that they will probably want to keep a certain amount of of tariffs. So I think when we discuss with the US, I think it is it is important to understand, to be realistic and understand what the US position is that also and that is the reason why we are preparing in the area of rebalancing. It is very possible, as you say, that we do not get rid of all the tariffs. And what do we do then? Well, we might have to see how we rebalance on our side. We will do that. And I replied to the answers there in a manner in which we target products, where we either can produce them ourselves or where we have good alternatives, uh, and in a manner that we don't hurt our own competitiveness and production of goods, which then have to compete in the world market or indeed in the EU with other with other countries products, because we do not intend to proceed to the kind of closing, unilateral closing that the US has, has, has been doing, we will not repeat the mistakes done in the 1930s, the Smoot-Hawley tariffs, where a US move on this precipitated everybody else to do the same thing.”
EU-US trade relations · EU policy on custom fee on non-EU imports
- “So, um, where does this leave us? Um, we also continuing, uh, in the area of, of of of diversifying and strengthening trade, uh, rules or rules based trade. Um, I don't want to go into details either there, but you know that our, uh, negotiation agenda with other countries is strong and continues. The recent summit we just had yesterday on CETA, uh, is, uh, sorry with the Canada is a good example of that. We will, uh, start looking at the question of digital trade more in earnest with, uh, with, with Canada. We will continue doubling down on the simplification and strengthening of the EU single market. And, um, we will continue, uh, the process with you. And I think that's my final point. Um, we will do all that we can to reach a satisfactory, uh, solution. Uh, at the same time, we will also prepare for the eventuality that this is not possible. And in this endeavor, as is the case, I think, in all the very difficult issues that we are having to deal with, for the moment, EU unity is absolutely of crucial importance as well as is strong political support. So we will continue to work very transparently with you, and we will continue on counting upon a strong political support from the European Parliament. And we are at your disposal for inform you in this format, other formats whenever necessary. Thank you.”
Free trade agreements (FTAs) · EU Single Market harmonisation
- “Thank you, chairman, and thanks for all these these questions and comments. There's a lot of a lot of things. So to unpack maybe I will start with with your last question. What are the motivations for for US tariffs. Um, and I think that's an important question, chairman, because I think it also gives us an indication of, uh, the kind of flexibility we should expect from the US in relation to how far they can, uh, are they willing to, uh, to meet our, uh, requests on chairs? If you look at the justification for tariffs, there are there are various ones. One of them is clearly income. One of them is clearly in order to try to plug, uh, the hole or that is that exists in US finances for several years. And if we look at the tax and the spending, uh, intentions of the US government and Congress, we should expect a tariff, sorry, a budget deficit to continue. So I do think that the question of, uh, getting income is an important factor for the US in having installed and probably also wanting to maintain the Chinese. The same is the wish to ratio, or maybe not even ratio, but simply unsure production which either has existed in the US or which the US would like to exist in the US. Um, there's also clearly a wish to, um, create favourable conditions for for manufacturing workers. And all these reasons reflect, uh, deeply held, uh, policy beliefs by, uh, the, the, the current, the current or the current administration.”
EU-US trade relations
- “So, so so I think I think, uh, I agree with you. When you, when you, when you kind of infer that these tariffs have not only been put on the table for, uh, leverage or for negotiation reasons. And that, uh, kind of leads me to the question posed by Mr. Vauban. On, on, on on. What should we expect from, from the US? And, um, it is our assessment that the US seems quite intent on maintaining tariffs in a, in a whole number of, uh, of sectors, uh, in different ways, uh, to, uh, towards different trading partners. Um, and with the wish to bilateral trade relations, um, rather than relying on the multilateral, uh, frameworks that they will say, well, in relation to one trading partner, this is, uh, the uh, right level of tariffs, we feel that that, uh, for us, um, is uh, in principle should be a positive point because we believe that the playing field between us and the US. And you've just quoted that yourself in terms of tariffs paid is very even. There are low average levels of tariffs on both sides. So we feel that maybe in comparison to other trading partners of the US who have much higher tariffs, we are in a position where we should be able to argue, quite reasonably, that the level of tariffs should be, should be, should be lower.”
Carbon Border Adjustment Mechanism (CBAM) · EU-US trade relations
- “But in addition to that, you still have the zero one tariffs from the US on electric vehicles for example. And there the tariffs on steel and aluminium which are all there. So in total the figure is quite a bit higher than, than the 30% that has come from press statements. Um, and, and I think it's also important to note that, uh, China in, in this deal does not appear to have stopped any of its export controls on, on, on, on critical raw materials, for example. So, so it's still also a very partial, uh, very partial deal. Now, as you said, uh, we have to also move forward on rebalancing our trade relationship in case that there's not a full agreement or if there's only a partial one. And that's why we've launched a public consultation. You've seen this very big is 95, covers €95 billion of of goods imported from the US. Um, and it also includes the possibility of restricting certain EU exports of steel or chemical products, uh, with the worth of 4.4 billion. Now, we do that as we always do it in the in the EU. We are very transparent. We consult and we have given, uh, member states and stakeholders four weeks to provide us comments, uh, on that. And once this consultation ends, once we've had possibility to look very carefully on what has been said. Well, we will then, uh, see, uh, what, uh, what we will do, whether to adopt, uh, countermeasures, whether to what what how, how, how many goods we would cover and what, uh, the tariffs would be all that is not prejudged.”
EU-US trade relations
- “Sorry, the strongest investment relationship in the world. Uh, and we should, uh, continue to work together on on areas of global, uh, challenges or shared challenges, um, and, uh, and strategic areas and try to find arrangements, uh, in, in, in the areas of, of steel and aluminium, semiconductors, cars, uh, aviation and and critical, uh, raw materials. However, what we have made very clear to the US, uh, is that, uh, for us, um, and what we are proposing to do with the US is not a unilateral offer. We are not in the business of making unilateral offers. We're in the business of mutual, beneficial and balanced deals. Um, we will be flexible, but, uh, it's also quite clear that there are very important limits. Each side needs to continue to respect the other's regulatory autonomy. And it's quite clear that EU legislation is not on the table as something to be negotiated. Um, in the meantime, as as you have seen, the US has announced deals with, uh, UK and with China. Um, the US deal with China, uh, well is It's not actually a full deal. It's more of a political agreement to start negotiations on a UK US economic prosperity deal. We can see that what has been published that this will, uh, imply some political concessions by concessions by the UK, including UK reductions in tariffs on on beef.”
Sourcing of critical raw materials · EU-US trade relations
- “That is the enterprise. And that will ensure that the market in Europe does not run any risk of being overwhelmed by unfairly cheap imports from the US. It should also be noted that the US are not large players in international trade of those goods. They are, in fact, the US are in fact sizeable net importers from the world. Now going to article two, we here propose to establish 20 tariff quotas for a number of agricultural, fish and processed agricultural products. That is very important to note. This is not full liberalisation. It is only for a certain amount. And these products, these 20 tariff rate quotas, can be broadly divided into three categories. First, um, there we have liberalized um, a number of uh, we have given. Sorry. We've given to, uh, a number of products where current MFN tariffs are low or even very low, and therefore the liberalization offered within this quota is not problematic. And this concerns ten trqs, namely the quotas from 5 to 13 and number 17. And for these goods, it's important to note that the proposed trq volumes cover basically what we already exist, uh, what we already import from the US. Um, but there are two exceptions. That's, uh, Alaska pollock and soybean oil. But on those two goods, what we're actually seeking now, for the moment, are to diversify our sources of imports.”
Import of agri-food products in the EU · EU-US trade relations
- “Uh, and it also includes, uh, annexes, uh, uh, in the it includes several annexes. Uh, the first operational part that's uh, article one, paragraph one concerns the full liberalisation of tariffs for certain industrial and certain agricultural goods. And they are listed in annex one. Uh, and for clarity, this also includes now goods. Whether tariff is already 0%. I think that's important to keep in mind. Uh, in fact, already two thirds of the goods that we import from the US, uh, are already subject to 0%. The remaining one third of goods concerns US exports to the EU worth €110 billion in 2024, and the average tariff reduction is. Around 4.3%. Some of them are higher, for example, cars, but many of them are also, uh, lower. Um, this also this this, uh, list of full liberalization also includes certain non-sensitive agricultural goods like seeds or some fresh vegetables, uh, or some agricultural goods where the MFN tariff Was already very low. And that's, for example, the case for seeds or sweet potatoes, which only have a MFN tariff of 3%. Now, the second part in this article is the one that concerns the liberalization of certain fruits and vegetable products. And here the liberalization is is partial. And it's because we here keep the EU's enterprise system. So that means that what we do here is that we liberalize the low ad valorem duty of these goods. Um, but the significant specific duties remain in place in case the goods from the US are exported and sold below a certain price.”
Import of agri-food products in the EU · EU-US trade relations
- “Um, it is true that the US is our most important trading partner. It's 17% of our trade, but it is also true that 83% of our trade is with other trading partners, and we should maintain that very strongly and be very attached to, uh, have rules. Trade takes place with these countries on a rules based, uh, on a rule on the basis of rules, whether they are on the basis of FTAs or whether they are WTO based. So, so I think, um, we need to we need to we need to try to step up there and continue the work on WTO reform and have a successful as possible next ministerial. Um, now. I think what I think what we have tried to do, I also hear, um, that we are trying to portray it in a very positive manner. I think what I have tried today, today and what we have tried to do our through our factories is to provide you a very sober message. This is a count. This is a nature of the ghq's we have given. This is the amount of tariffs foregone. Um, yes. There are some forgone tariffs. Uh, but, uh, that is always the case when we make trade agreements, there are always foregone tariffs or duties foregone in other areas. We have duty income.”
Asia-Pacific · EU-US trade relations
- “So that for me has a conclusion that we need to be very ambitious in what we try to achieve. On the one hand, in terms of lowering terrorists with the US to the largest extent possible. And also, if we do impose more tariffs on the US, be careful not to do the same kind of, uh, mistakes of across the board, uh, tariffs which, which the US uh, have have, have put uh and which we feel uh, has uh negative consequences from what we have seen on, on parts of the US economy. We need to be smart and to be and to consult well, and to take very much into account, uh, the various, uh, impacts, uh, on the, specific countries may need to ensure that there's a fair burden sharing, and we also need to ensure that any, any impact on particularly exposed industries or indeed citizens, needs to be taken into account. You have seen also that for that reason, for example, also, we are very much trying to avoid that there are any terrorists when it comes to pharmaceuticals. We do not need higher medicine prices here in the EU. So we're working very, very, very intensely with the US to try to maintain the zero or a very low level of tariffs when it comes to, uh, pharmaceutical trade across the Atlantic. Um, we need to ensure a strong support to the WTO and compatibility with, with WTO rules.”
EU-US trade relations
- “Um, in the areas of steel and aluminium, for example, we also feel that there is clearly space for jointly increasing the resilience of the EU and the US in critical supply chains. And that includes, for example, semiconductors and pharmaceuticals or indeed critical minerals. Um, we also, uh, feel that given the stakes when it comes to aircraft and aircraft parts, parts where there is important dominance from the EU and the US, we have a an interest in working together to ensure Sure the health of of these strong industrial sectors on both sides, as you say. As you rightly pointed out, uh, German, uh, the U.S. has explained its views and positions on what they would like from us. They have explained what they would like to see in relation to to tariffs. Um, they have expressed their wish to address certain non-tariff issues. You can also call them non-tariff barriers. I'd rather say non-tariff issues. Uh, they have also said that they would like to address important questions related to economic security, for example, in the area of export controls or investment screening. And, um, as I said, the discussions are quite complex and there's a lot to do. So what we're doing now, and the approach we're taking is that we are being, uh, laser focused on trying to achieve a mutually beneficial and satisfactory deal before the 9th of July, and that means bringing together all the issues on the table and achieve the kind of stability and predictability that importers and exporters on both sides need and to avoid also.”
Sourcing of critical raw materials · EU policy on screening foreign investment in strategic sectors and critical infrastructure · EU-US trade relations
- “Uh, for example, for pork and cheese and notably, uh, to the US. In fact, we export 140,000 tons of cheese to the US, uh, last year, and we exported 77,000 tons of pork. So even in case, uh, the US does fill and use the whole potential of these quotas, we do not see that there's a risk for market disruptions. Now, that is as far as concerns the tariff concessions that we're offering. Let me now rapidly turn to the, uh, suspension clause under article three. And you can see that we propose four scenarios in which we would be able to, uh, react and suspend, uh, if necessary, quickly because we propose to do that through the comitology procedure. The first scenario is a suspension directly related to the joint statement. And that would be triggered in case the US does not live up to its commitments. The second scenario expands the scope for acting when there's already a threat that the US may not follow through on its part of the deal, if it's clearly signalled. The third scenario is a safeguard like measure which we would be able to trigger in case of the surge of imports. And the last reflects that, the fact that we also propose that we should be able to act in cases not covered by the first three possibilities for suspension, but in case that there is a fundamental change of circumstances, uh, that we consider has taken place.”
Export of EU agri-food products · EU-US trade relations
- “Thank you very much, chairman. And indeed, we already had a very general discussion in Inter on the 3rd of September. There was also a discussion in the plenary. So what I really want to do today and what you put on the agenda is, uh, is the two proposals and we welcome that you have put these two proposals so rapidly on the agenda of Inter. Um, and I have also had the possibility earlier this week to explain in a technical meeting with, uh, with, with Inter members, uh, the some of the details of the proposal. So we are very appreciative of this rapid engagement. Now, um, as you said, uh, as part of the implementation of the joint statement, uh, on 28th August, the Commission presented to the Parliament and to the Council to legislative proposals. Uh, the first of these legislative proposals concerns the elimination of tariffs on all US industrial goods, uh, and also provides preferential market access for certain US seafood and certain non-sensitive agricultural goods. The second proposal is the continuation of the tariff free treatment, this time on an MFN basis for imports of lobster from the US, and it has also now been expanded to include processed lobster. Now, I would like to focus on this first proposal. That is the proposal for the elimination of industrial and certain agricultural and seafood products. If you look at the proposal, you can see that it is uh, it consists of three operational parts.”
Import of agri-food products in the EU · EU-US trade relations
- “And that is maybe the silver lining in some of this, in some of the things that are happening now. The final point is that, uh, we will also look very carefully at, uh, at the risk of trade diversion from other countries. Uh, that is, of course, particularly in relation to China. China is a country that is most hit by the US measures, and they will need to find a new markets. We're looking very carefully on that. We're setting up a special mechanism. It's too early to say what is exactly, uh, has happened. And of course, now there's now, uh, a deal between the US and China. We will still have to see what then actually. If there will be trade diversion. But we will continue to look at this very carefully, monitor it and take action if necessary. So final point from my side is that in all this, of course, we have enormous EU interests at stake. It's very, very important that we maintain EU unity. Uh, that and a strong political messaging, and that the European Parliament has its part to play, has its part to play, uh, informing uh, in providing internal support and in also passing the messages to your interlocutors, uh, on, on, on the US side. And we look forward to continue working with you on this important matter. Thank you.”
EU-US trade relations
- “Um, we believe that that is perfectly possible. Um, um, we we have, uh, the possibility of of maybe having a first, uh, agreement with the US, maybe something like, uh, in the form, if not in the same kind of contract. Sorry. Content as the UK. Something general that, uh, points in the direction in which we're going. Um, and given the trade profile of the US and our trade profile, we feel that there's definitely a possibility to, uh, to to achieve something that we, with a straight face, can go to, uh, the WTO in Geneva and, and defend if we are, if we are questioned. But it also underlines the fact to continue our, uh, efforts to, uh, reform the WTO, to update the rules and not simply, uh, to leave that by the wayside, because there are because the US has less faith in it, and because we have a problems in terms of the integration of China and the respect of of China, of WTO rules. The vast majority of our trade still takes place with countries around the world with whom we either have an FTA or who are very much attached to, to, to the WTO. And we need to continue trying to use that to, to, to, to strengthen a rules based trade. Um, chairman, I'm, I'm happy that I'm not the only person who has been in the situation that I have just landed in Vietnam, or maybe I've been close to taking the plane to the US and seeing that there has been another trade measure by the US, and that is indeed a problem.”
Free trade agreements (FTAs) · EU-US trade relations
- “You are very good. Yeah. Yeah. Well, the legal challenges, uh, in the US. Well, it's. Those are internal procedures. Uh, I think we don't put our trust in them. Uh, we have seen that in the past. Uh, the judiciary has, uh, left quite a bit of leeway when it comes to, uh, the possibilities of the US executive to decide exactly what national security is or or to strike down the. The courts have been very reticent to strike down, uh, actions, uh, by the US executive in the area of trade. Um and the US judiciary system is is internal. We will put our faith in our capacity to negotiate with, uh, with the with the US. That's. That's where we are. That's where that's that's the road that we will go down. Um. Finally. Uh, yes. Uh, on on bourbon. Uh, we we we see, um, that, uh, there's a regrettable situation today. The situation is that, uh, despite the fact that we that we tried to maintain the zero over zero, uh, agreement that we have, uh, with the US, uh, they have, uh, proceeded to impose a 10%, uh, on the exports of, of EU, uh, spirits. Uh, I think in that situation, the question of, of how to respond in that area is back on the table.”
EU-US trade relations
- “For example, for Alaska pollock. We want to diversify away from Russia. Secondly, uh, there's a second group here, and that's products where current MFN tariffs are quite high, but they are not prohibitive. And those concerned 60 accused and they concern notably processed agricultural products and cover up. And those are the quota numbers 14 to 16 and 18 to 20. What's important to note here is that in terms of quantities that we're offering here, these constitute just between 1 to 5% of what the EU actually exports to the world. And you should note that the EU is in fact the largest world exporter in all these categories, and a very substantial net exporter both to the US and to the world. So we do not expect a major market impact in Europe either. Now, the third group of Trqs are the products where there is a high out-of-quota MFN tariff. And in these cases, um, we offer tacos, which are of course very valuable for US exporters, but they are modest in relative terms. When we compare that to the EU market or to our US exports to the world. They in fact represent 0.1% of the EU market, or a mere 1% of what we actually export to the world. In each of these goods. And that concerns cheeses, fresh dairy and pork. Um, again, as for the previous category, it should be noted that the EU is the largest world exporter.”
Export of EU agri-food products · EU-US trade relations
- “I think we would like to move forward as rapidly as possible. We are certainly in favour of of that. Um, I think I agree with you that it was useful to have Mr. Greer and Mr. Lutnick in town. Uh, we have the impression from them that they had fruitful exchanges also with the with the parliament, uh, understood the role of the Parliament, understood the seriousness with which you approaching, uh, this, uh, this file in accordance with your, uh, procedures, uh, also that you are concerned about the need for stability, uncertainty, including in the area of, of of steel and aluminium and derivatives. And, uh, that is an issue that we continue to discuss and take up with the US, uh, and that we will continue to, to underline that we need to address. So, uh, I mean, not much more than that chair. Looking forward to to to your consolidated views. And then hopefully we can start the trilogue where we will be of the best assistance that we can.”
EU-US relations · EU-US trade relations
- “Um, it is, uh, our clear view that the spirit of the agreement was to provide a strong measure of certainty and stability, um, and that, um, it cannot be that we end up in a situation where there, uh, is more than changes at the margins. I mean, there are a number of two, three, section two, three, two, uh, investigations out there. We knew that they weren't going. We knew that they would, uh, have, uh, maybe some impact on EU exports, but but the trade volumes were quite limited. What we cannot have is a hollowing out of the agreement to have a certain amount of, of, of stability and predictability. On the other hand, I would also say we are still in the implementation phase we're discussing with the US, and we do hope that what we are encountering here, uh, are teething problems, uh, in relation to how things are being implemented. And we are taking it up, uh, at the political and the, uh, technical level, um, will, I think strong arguments and will the clear message from our side that this is something that is of real concern at the political level, uh, here in, in the EU, including at the level of, uh, the co-legislators who are now looking at how we will implement our commitments. Now, the US has in fact Implemented.”
EU-US trade relations
- “Yes. Thank you very much. Uh, just some brief comments from my from my part, uh, on on this on this report and and on the draft opinion, uh, which I think that we, uh, in general feel goes in, goes in the right direction. I think the rapporteur very well, uh, has underlined the success of, of CETA. Uh, We agree on the thrust of the report and also on these on these amendments or suggestions. Um, so we need, I think, from our side, we think we need to continue build to build on this success bilaterally. We need to continue strengthening CETA to diversify, uh, our trade. It's not only about new trade agreements, it's also about capitalizing and developing, uh, the trade agreements that we have, uh, with, uh, with third countries and, and their CETA is an interesting example of our trading partners. They are willing, uh, to to go further. And one concrete example of that is that several members have also underlined in the area of, of e-commerce, of digital trade. Uh, last week on the 24th of November, the council adopted the negotiation authorization for us, the commission to launch the digital trade agreement Negotiations and we hope to do that very soon. And once Canada has also finalised its internal procedures. So this is one area where I think where we're delivering on the June on the June summit now bilaterally. Also, uh, while we're going forward, we will continue to be very vigilant in terms of ensuring that, uh, Canada also respects, uh, all its commitments under CETA.”
Free trade agreements (FTAs) · EU-US trade relations
- “I do not think that that will be the case this time around. The US represents 13% of world trade. The rest of it has no interest in closing down. Um, now, um, what what's on the table? Um, I think we we have an enormous possibility to improve trade and investment across the Atlantic. Um, there's lots to do in terms of, of of lowering tariffs. We can do that. We're ready for a zero for zero approach across all industrial goods, for example. And we are perfectly ready also to look at at, at Ncbs. Anchovies, but it has to be in a mutually beneficial and balanced manner. And we do not accept, uh, that changes to EU legislation should be on the table. We need to respect the regulatory autonomy and our capacity, full capacity, to implement the rules in the way they should be implemented. Now, is it possible to listen to the US? Is it possible to see how one can take those concerns into account? Yes, of course, that's always possible.”
EU-US trade relations
- “Exemptions. We believe that that is something, uh, that is in the interest both of the US and of the EU. The decision on that is very much on the side of the US, and we must recognize that the US has taken a number of decisions which we feel if we would take some of the measures like that would hurt our economic sectors. But, uh, and given the fact that the US has now to a certain way, now has stepped back from its WTO commitments, uh, we we need to take that into account when we seek, uh, to have further exemptions, further exemptions which which would reflect which should reflect interests across the EU and across sectors. We hear that some members are underlining the area of wines and spirits and other things. Um, but, uh, we believe that we need to be careful to ensure that it reflects all sectors in the sectors in a balanced manner. Now, um, WTO, the compatibility, Ability. I think what I want to do, their chairman, is to say that while it is true that the US has stepped back from its WTO commitments, I think that underlines the need for us to maintain our attachment to the WTO and to rules based trade. And we should see that as an opportunity to strengthen our alliance with other countries who feel the same, who have the majority of their trade with countries other than the US, or even those who have the majority of their trade with the US.”
EU-US trade relations
- “That is a separate decision to be taken under the enforcement regulation. But it is a very important step that we have taken because through this consultation, we will know what are the goods that we can move forward on, uh, in, in, in, in, in a manner that, that, that is in the EU interest. So, um, in addition to that, um, other options are still on the table. And as president von der Leyen has said, we are looking into the question of services and notably digital digital services. Um, but as part of this approach, um, we are also we will also launch a WTO case against the US reciprocal uh, or universal tariffs and its tariffs on cars and car parts. Uh, we do that because we believe that it is very important that we act to reaffirm that internationally agreed rules do matter. Um, the third leg in our strategy is trade diversification. I don't want to be long on that. You know it. The agenda. It is very ambitious. We made very a lot of progress in the latest month, and we will continue to seek to advance on this. Uh, our and we, we we have a lot of dynamism in that area.”
EU-US trade relations
- “We do preserve our market access and our competitiveness and our comparative advantage in the US market. And the figures that we have now, uh, for trade flows reflect that, at least until now. Third, uh, this deal provides more stability and predictability. It gives a good measure of stability and predictability, but it also helps us maintain our overall, uh, relationship, uh, which is, of course, much broader than just trade. And I think this these steps that we are taking to stabilize the trade relationship is something that helps also stabilize and fortify our links in other areas. It cannot be seen in isolation. And finally, this deal is a platform for engagement upon which we can build. There's a possibility to extend, uh, the, uh, uh, the, the areas that the US, for example, will, uh, for the goods for which the US will only apply MFN tariffs. Um, we have a platform to engage and engage on steel and aluminium. And that also includes, of course, uh, the derivatives, the derivatives issue. So, um, thank you very much for the possibility to, uh, to, to present this, uh, proposal to you. And we are now looking forward to the process, uh, among the co-legislators moving forward. And I would like you to rest assured that we are at your disposal for anything that you need to help you in this process. Thank you.”
EU-US relations · EU-US trade relations