Monday

5th Dec 2016

2015 target date for EU-US trade deal

  • De Gucht: 'More paramount than speed is achieving an ambitious deal' (Photo: wikipedia)

EU and US negotiators want to have a transatlantic trade and investment deal in place by 2015, but French politicians are wary of the pact.

Hours after US President Barack Obama unveiled plans for talks aimed at a bilateral pact worth up to €86 billion per year, EU trade commissioner Karel de Gucht told reporters at a press conference on Wednesday (13 February): "We'd like to complete this work in about two years from now."

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

De Gucht, who will lead the EU's negotiating team, noted that "more paramount than speed is achieving an ambitious deal," however.

For his part, commission President Jose Manuel Barroso said "a future deal between the world's two most important economic powers will be a game-changer."

He added that "it's a boost to our economies that does not cost a cent."

A joint EU-US statement said that talks would "contribute to the development of global rules that can strengthen the multilateral trading system."

The EU and US already account for 47 percent of the world's GDP and one third of global trade flows, according to the World Trade Organisation (WTO), with €2 billion of goods and services traded bilaterally every day.

A flavour of what the two sides want to achieve is spelt out in the final report of the EU-US so-called High Level Working Group, published on Monday (11 February).

The first goal of the group, led by De Gucht and US trade representative Ron Kirk, is to "eliminate all duties on bilateral trade" and to liberalise the services sector. Average tariffs are currently worth 5.2 percent for the EU and 3.5 percent for the US.

The deal is likely to go beyond eliminating tariff barriers.

The working group said there is also a need to tackle "behind-the-border" obstacles to trade through "harmonization of future regulations, and....mutual recognition" of technical standards.

De Gucht estimated that differing standards and regulations are currently "equivalent to slapping a traditional tariff on a product of between 10 and 20 percent."

The two sides are keen to fill a void left by the collapse of the Doha round of talks at WTO-level in 2008.

One priority is to agree standards on intellectual property rights and environmental and employment protection.

Both sides need the approval of domestic legislators before the start of formal talks.

The EU needs the backing of all 27 national assemblies.

French trade minister Nicole Bricq on Wednesday (13 February) warned that the governing Socialist party would only support a deal that "respects our values, Europe's cultural vision, our agricultural model and which will facilitate progress in ecological and energy matters."

France - which shot down previous attempts to agree an EU-US trade accord in 1998 - will decide whether to back the talks on 1 March, Bricq noted.

The final agreement will also have to be ratified by EU member states and by a final vote of consent by MEPs in the European Parliament.

Last year, MEPs used new powers by vetoing the global anti-counterfeit treaty Acta - the first time that euro-deputies rejected an international pact negotiated by the EU executive.

Analysis

Doubts hang over EU investment plan's future

Questions of value for money and a lack of transparency complicate adding almost €200 billion more and extending the Juncker investment plan to 2020.

News in Brief

  1. Idea of road transport agency gains momentum among MEPs
  2. EU dismisses euro crisis risk after Italian referendum
  3. Italy result poses no risk to the EU, Sapin says
  4. EU asked to clarify links to Iran executions
  5. Italian economy minister tipped as caretaker PM
  6. EU tells US tech giants to act faster against hate speech
  7. Iceland's Pirates in bid to form government
  8. Danes are the happiest workers, study says

Stakeholders' Highlights

  1. European Jewish CongressEJC President Breathes Sigh of Relief Over Result of Austrian Presidential Election
  2. CESICESI Congress Focuses on Future of Work, Public Services and Digitalisation
  3. European Gaming & Betting AssociationAustrian Association for Betting and Gambling Joins EGBA
  4. ACCAWomen of Europe Awards: Celebrating the Women who are Building Europe
  5. European Heart NetworkWhat About our Kids? Protect Children From Unhealthy Food and Drink Marketing
  6. ECR GroupRestoring Trust and Confidence in the European Parliament
  7. UNICEFChild Rights Agencies Call on EU to put Refugee and Migrant Children First
  8. MIRAIA New Vision on Clean Tech: Balancing Energy Efficiency, Climate Change and Costs
  9. World VisionChildren Cannot Wait! 7 Priority Actions to Protect all Refugee and Migrant Children
  10. ANCI LazioRegio-Mob Project Delivers Analysis of Transport and Mobility in Rome
  11. SDG Watch EuropeCivil Society Disappointed by the Commission's Plans for Sustainable Development Goals
  12. PLATO15 Fully-Funded PhD Positions Open – The Post-Crisis Legitimacy of the EU (PLATO)