European Commissioner for Trade and Economic Security Maros Sefcovic. — AFP
BRUSSELS: The European Union (EU) is set to propose a plan to the United States that would implement the next phase of the trade agreement the two sides reached this summer, according to people familiar with the matter.
The push comes as the EU’s trade chief, Maros Sefcovic, is due to meet his US counterparts later this month, said the people, who spoke on the condition of anonymity.
The move is in response to proposals Washington sent Brussels earlier this year demanding a legally binding plan to revise EU regulations it said hurt US businesses, according to the people.
The deal agreed between European Commission president Ursula von der Leyen and US President Donald Trump in August set a 15% tariff on most EU goods entering the US, but also included pledges to keep working on issues like how to deal with steel exports and non-tariff barriers.
The 15% ceiling also applies to cars and the EU is keen to ensure that it will also cover other industries the US might be hit with sectoral duties in future.
As part of the accord, a small number of EU goods benefit from lower rates, while the bloc has presented legislation to scrap tariffs on US industrial goods and some non-sensitive agricultural exports.
A commission spokesman declined to comment on the plan but confirmed the EU was engaging at both political and technical level with the United States.
The so-called implementation action plan, which has yet to be shared with the United States, would focus on five areas, according to the people.
Those areas include tariffs and market access, where the EU is seeking lower rates for several additional goods including wines and spirits.
The plan also seeks a dialog to address issues such as standards, digital trade, technical barriers and other trade grievances, said the people.
It would also explore cooperation on steel and aluminum where the bloc wants to work with the United States to tackle global overcapacity.
The EU is still facing a 50% tariff on steel and aluminum exports, as well as on many derivative products.
The commission, which handles trade matters for the bloc, wants a quota system that would allow a certain amount of the metals exports to receive lower duties.
The proposed action plan would also seek to set up an economic security working group to focus on issues such as investment screening, export controls, procurement and the supply of critical raw materials, according to the people.
It would also cover and monitor the strategic purchases and investments the EU pledged to make in liquefied natural gas and chips as part of the deal it agreed with Trump, the people said. — Bloomberg
