Washington says EU must slash levies on US exports before getting tariff relief
The EU must cut tariffs on US industrial and agricultural imports before Washington removes more of its levies on European exports, US trade chief Jamieson Greer said on Monday.
Speaking after meeting his European counterparts in Brussels, Greer said that Washington wouldn’t exempt EU goods from a blanket 15% US tariff until Brussels implemented its part of the joint EU-US statement agreed this summer.
Washington has already followed through on its pledge to lower tariffs on EU auto exports from 27.5% to 15%. However, the European Commission has not yet fulfilled its promise to cut tariffs on all US industrial products and many agricultural goods, including dairy, nuts, and some fruits and vegetables.
Brussels tabled a legislative text in August to slash tariffs on US products, but both the Council and the European Parliament still need to approve it. While the Council has signalled that it won’t propose major changes to the proposal, the Parliament is eager to “improve” the trade pact.
“It’s really hard to move on to other things or to a broader cross section of the economy before we fully implement the first part of the agreement,” Greer said, adding that the US had kept its side of the bargain by cutting levies on European cars.
“The European Union has their legislative process going through parliament to lower their tariffs, that’s all on the right track,” he added. “And so we need to get that well in hand before we’re able to have that kind of conversation, which we’re happy to have.”
Responding to Greer’s comments, EU Trade Commissioner Maroš Šefčovič said he would look into ways to “progress even faster” in the Council and European Parliament, a topic he said he would raise with MEPs later this week in Strasbourg.
The Parliament’s lead negotiator, German MEP Bernd Lange, has proposed significant changes to the text, including an 18-month sunset clause that would suspend the agreement after that period.
Lange has previously said he expects an agreement on US tariff concessions only by next spring.
