Clémentine Baldon
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The ‘massive trade deal’ struck between Trump and Von Der Leyen on 27 July has been unveiled by the Commission on 20 August: see the “Joint Statement on a United States-European Union framework on an agreement on reciprocal, fair and balanced trade” on the Commission’s website.
It is blatantly favouring the US over the EU interests and autonomy.
Non-reciprocal cut in tariffs
· The EU commits to eliminate tariffs on all US industrial goods and grant preferential access for a wide range of US seafood and agricultural goods.
· Meanwhile, the US would apply to EU products the higher of either 15% or the US Most Favoured Nation tariff rate.
By granting tariff cuts to the US outside a fully-fledged free trade agreement, the EU is likely to breach WTO rules, namely the Most-Favoured Nation principle, by discriminating against other WTO members.
Procurement and investment in favour of US goods and services
· The EU commits to procure $750 billion worth of US LNG, oil, and nuclear energy products and $40 billion worth of US AI chips through 2028.
· EU companies “are expected to invest $600 billion across strategic sectors in the US through 2028”.
· The EU “plans to substantially increase procurement of military and defence equipment” from the US.
US interference in EU norms
· To address the concerns of US producers or exporters, the EU commits to review key green deal regulations including: the EU Deforestation Regulation, the CBAM, the CSRD and the CSDDD.
Those interferences raises serious concerns as to the democratic law-making process, and the autonomy of EU law.
Follow-up threats on new US tariffs over digital regulations
Following the “deal”, on 25 August, Trump warned, on its social network, that he would impose “substantial additional tariffs” on countries with digital regulations.
This clearly targets the EU’s Digital Services Act (DSA), and AI act and could influence the Commission’s readiness to fine US tech companies despite various pending investigations.
Next procedural steps in the EU
The Commission has already adopted in August an implementing regulation suspending ‘trade rebalancing measures’ ie. increased tariffs on some US products adopted in July.
It has also just tabled two regulations to implement its commitments to cut tariffs on US products which will have to be formally adopted by the Council and the EU Parliament.
Let’s hope that this will prompt a much-needed public debate on EU’s willingness to protect its citizens and the environment, and on the extent to which we are willing – or not – to accept that EU rules are dictated by the US in the attempt to contain Mr Trump’s endless threats.
