The EU can reach a framework agreement with the USA on tariffs within a few days
The EU and the USA are working intensively on a framework agreement on tariffs, which could be finalized “within the coming days.”
This was stated on Wednesday by EU Commissioner for Trade Maros Sefcovic, who is the chief negotiator for the EU Commission on the agreement.
“We have made good progress towards a framework declaration. I hope that we can complete our work soon,” says Maros Sefcovic.
“I hope that we can reach a satisfactory result perhaps within the coming days.”
He thus advocates for the EU and the USA to enter into a framework agreement, which will serve as a basis for later agreements.
“It should be a framework that paves the way for a finalized agreement between the EU and the USA,” says Maros Sefcovic.
He has personally led the negotiations, which have been put into high gear ahead of Trump’s original deadline of July 9.
“After Von der Leyen and Trump agreed in May to expedite the negotiations, the talks have intensified. We have been in constant contact and ensured that real progress continues to be made,” says Maros Sefcovic.
He emphasizes that last week there were four days of political and technical negotiations. These have since been followed up with daily meetings via video link.
“The negotiations continue remotely every day, and they are constructive,” says Maros Sefcovic.
Trump chose to postpone the deadline for when he would impose additional tariffs from July 9 to August 1. This has provided additional time for negotiations.
Messages from Maros Sefcovic suggest that the EU Commission has chosen the line that, among others, Germany’s Chancellor Friedrich Merz has advocated.
Namely, to pursue a limited agreement to avoid the situation escalating into a full-blown trade war with additional tariffs from both the USA and the EU’s side.
However, some EU countries are concerned that a quick agreement will mean worse conditions.
According to Maros Sefcovic, the EU Commission maintains the red line regarding the EU’s right to set its own standards for the products entering the European market.
“There is nothing in our joint declaration (with the USA, ed.) that will affect our independence in making our own rules,” says Maros Sefcovic.
However, he suggests that there will be a change in trade with the USA, which should ensure that the USA gets more out of trading with the EU:
“Let me be clear: While we would like to reach a satisfactory agreement, we need to make a balancing act.”
“Trade with the USA is out of balance due to the USA’s trade deficit,” says Maros Sefcovic.
Trump has previously indicated that he does not intend to remove the general tariff of ten percent on goods from the EU. This could be a way for the USA to limit EU exports to the USA.
Maros Sefcovic, however, does not reveal the details of the agreement. It is thus unclear what tariff rates Trump might maintain despite a potential framework agreement.
Due to Denmark’s special role as the EU presidency country, Prime Minister Mette Frederiksen (S) was cautious in commenting on the negotiations when she visited the EU Parliament in Strasbourg on Tuesday.
Here, she supported the EU Commission’s line in the negotiations:
“There is agreement on the European side that a trade war is a bad idea. I would like to reiterate that today. No one gets richer from it.”
“And since we are allies across the Atlantic, we should stand together rather than do the opposite. So my recommendation is clearly that there should be no tariffs or trade war on the table,” said Mette Frederiksen.
/ritzau/
