Khaleej Times

EU resists linking US tariffs waiver to revival of free trade agreement

- Jonathan Stearns

brussels — The European Union distanced itself from the idea of reviving talks on a broad free-trade agreement with the US as part of EU efforts to gain a permanent exemption from US President Donald Trump’s controvers­ial import tariffs on steel and aluminium.

A day after US Commerce Secretary Wilbur Ross said the Trump administra­tion is willing to restart negotiatio­ns on the stalled TransAtlan­tic Trade and Investment Partnershi­p, the European Commission said it’s seeking a “dialogue” with Washington “on issues of common interest” including global steel overcapaci­ty.

“More contacts will be held in the coming weeks to agree the exact scope and framework of this EU-US dialogue,” a spokesman for the commission, the 28-nation EU’s executive arm in Brussels, said on Friday. “The commission is committed to engage in this process in an open and constructi­ve way. However, it should be clear that this dialogue does not represent the revival of the process for a comprehens­ive Trans-Atlantic Trade and Investment Partnershi­p.”

The TTIP negotiatio­ns to expand the world biggest economic relationsh­ip have been frozen since Trump entered the White House with an “America First” agenda that has shunned multilater­al

He [Trump] terminated the trans-Pacific deal; he didn’t terminate TTIP Wilbur Ross, US Commerce Secretary

trade initiative­s. This extended to the completed TransPacif­ic Partnershi­p, from which Trump withdrew.

“He terminated the trans-Pacific deal; he didn’t terminate TTIP,” Ross said in an interview with Bloomberg Television on Thursday. “That was meant quite deliberate­ly and quite overtly as a message that we’re open to discussion­s with the European Commission.”

European trade chief Cecilia Malmstrom and Ross spoke four days ago with their eyes on a May 1 deadline for Trump to decide whether to prolong an exclusion for the EU from US import tariffs of 25 per cent on steel and 10 per cent on aluminium.

The White House justified the levies introduced a week ago on national-security grounds dismissed by the EU, which has demanded a permanent exemption and threatened to join China in applying tit-for-tat tariffs on American goods and complainin­g to the World Trade Organisati­on. — Bloomberg

 ?? — Reuters ?? Trump will decide whether to prolong an exclusion for the EU from US import tariffs on May 1.
— Reuters Trump will decide whether to prolong an exclusion for the EU from US import tariffs on May 1.

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