Saturday

23rd Sep 2023

US 'open' to new talks on free trade pact

  • Trump has been pursuing a protectionist trade policy (Photo: consilium.europa.eu)

The US is open to resuming talks on the stalled free trade deal with the European Union, commerce secretary Wilbur Ross said on Tuesday (31 May).

"It's no mistake that, while we withdrew from TPP [Trans-Pacific Partnership], we did not withdraw from TTIP [Transatlantic Trade and Investment Partnership]," Ross told the CNBC broadcaster.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"The EU is one of our largest trading partners, and any negotiations legally must be conducted at the EU level and not with individual nations," he said.

"Thus, it makes sense to continue TTIP negotiations and to work towards a solution that increases overall trade while reducing our trade deficit,” he added.

Ross’s comments came as US president Donald Trump complained on Monday about Germany’s trade surplus with the US and vowed to correct the imbalances.

"We have a MASSIVE trade deficit with Germany, plus they pay FAR LESS than they should on NATO & military. Very bad for U.S. This will change," Trump tweeted.

The US trade deficit with the EU for 2016 was $146.3 billion (€131b), while in the first three months of this year it stood at $32.1 billion, according to official US data.

The US president also vented his frustration over Germany’s trade policy and Nato allies’ spending when he met EU leaders last week.

His behaviour prompted German chancellor Angela Merkel to warn that Europe could no longer rely on its allies and needed to take its fate into its own hands.

EU cautious

During Merkel’s visit to Washington in March, the chancellor attempted to convince Trump to revive TTIP.

Merkel reportedly spelled out to Trump that he cannot do individual deals with EU members and that the US administration would have to negotiate with Brussels.

Ross later told the Financial Times, a British newspaper, that the US is open to revive talks on TTIP, adding that Europe will have to compete with with China and Japan to show willingness to do the first deal with the new US administration.

But despite his statement, Merkel's economic minister Brigitte Zypries last week said “it is not likely the US will resume negotiations over TTIP".

Launched in 2013, talks on the trade deal stalled after Trump came into office in January, pursuing a more protectionist US trade policy.

The EU has been cautious over American overtures on the trade deal, and accelerated discussions to agree on free trade with Japan and to reform an older trade accord with Mexico.

Last month EU trade commissioner Cecilia Malmstroem met with Ross saying she wants “clarity" that both sides "share an ambition to find solutions to difficult issues” under TTIP.

Malmstroem reiterated that at the Brussels Business Forum last week, arguing that the EU needs time “to evaluate and reflect”.

“We both need a bit more time, and to know there was shared ambition and common ground,” she said.

Among his first acts as president, Trump withdrew the US from another major trade agreement, TPP, which 12 countries had signed in the Asia-Pacific region.

Earlier this month Asia-Pacific trade ministers agreed to try to revive TPP without the US.

TTIP's future in Trump's hands

EU commissioners admit they "frankly don't know" what the US president-elect intends to do with the US-EU trade talks.

EU admits 'unrealistic' to close TTIP deal this year

EU trade ministers said it was not realistic to finalise talks on the TTIP trade treaty before the end of the year. But they agreed to a similar deal with Canada and will take steps to have it ratified.

Latest News

  1. Europe's energy strategy: A tale of competing priorities
  2. Why Greek state workers are protesting new labour law
  3. Gloves off, as Polish ruling party fights for power
  4. Here's the headline of every op-ed imploring something to stop
  5. Report: Tax richest 0.5%, raise €213bn for EU coffers
  6. EU aid for Africa risks violating spending rules, Oxfam says
  7. Activists push €40bn fossil subsidies into Dutch-election spotlight
  8. Europe must Trump-proof its Ukraine arms supplies

Stakeholders' Highlights

  1. International Medical Devices Regulators Forum (IMDRF)Join regulators, industry & healthcare experts at the 24th IMDRF session, September 25-26, Berlin. Register by 20 Sept to join in person or online.
  2. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  3. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  4. International Medical Devices Regulators Forum (IMDRF)Join regulators & industry experts at the 24th IMDRF session- Berlin September 25-26. Register early for discounted hotel rates
  5. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch
  6. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations

Stakeholders' Highlights

  1. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  2. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  3. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  4. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  5. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics
  6. EFBWWEFBWW calls for the EC to stop exploitation in subcontracting chains

Join EUobserver

Support quality EU news

Join us