EU negotiator says 'still some way to go' on US trade deal under threat of higher auto tariffs
Progress and Challenges in EU-US Trade Negotiations
BRUSSELS, May 7 (Reuters) - European lawmakers and governments are making good progress in negotiations to finalise a deal scrapping duties on U.S. imports but "there is still some way to go", the European Parliament's chief negotiator Bernd Lange said on Thursday.
The lawmakers and governments were aiming to finalise a deal under renewed pressure from U.S. President Donald Trump, with divisions over safeguards an overhang on the chances of a swift agreement.
Current Status of Negotiations
"We have just concluded a constructive second trilogue during which we made good progress on the issue of the safeguard mechanism and the review and evaluation of the main regulation, but there is still some way to go", Lange said in a statement.
The negotiators will meet again on May 19 for the next round of talks.
US Tariff Threats and EU Response
Trump said on Friday he would increase tariffs on EU cars and trucks to 25% this week, from 15% currently, because the EU was not complying with the terms of a deal struck in Scotland last July.
Many EU countries want to ward off that threat and are pushing for swift implementation of legislation to remove import duties on U.S. industrial goods and grant preferential access to U.S. farm and sea produce, as set out in the trade accord.
Outstanding Issues and Political Divisions
However, nine months after the deal was struck, the European Parliament and the Council, the body representing EU governments, still have to agree on a common text before the duty reductions can enter force.
Lange said earlier in May that Trump's "behavior is unacceptable", after the U.S. president's surprise move to increase tariffs.
Safeguards and Political Positions
Lawmakers' Demands for Stronger Safeguards
LAWMAKERS WANT TOUGHER SAFEGUARDS
EU lawmakers want tougher safeguards, including suspending the deal if the U.S. fails to comply, making tariff cuts conditional on U.S. action, and ending EU tariff concessions entirely on March 31, 2028.
EU governments had little appetite for inserting such items, one EU diplomat said. Another said the two sides were still far apart, with further talks likely to be required next month.
Parliamentary and Ministerial Perspectives
Manfred Weber, president of the centre-right European People's Party, the largest group in the European Parliament, said he wanted to see a final vote in the EU assembly in May.
However, that appears ambitious given a number of political groups believe Trump's latest threat means strong safeguards are essential.
Impact on International Trade Relations
The car tariff threat cast a shadow over a meeting of G7 trade ministers in Paris on Wednesday.
German Economy Minister Katherina Reiche, whose country would be among those hardest hit by the car tariff increase, said she was in intense talks with U.S. officials and was hopeful they would "solve this challenge".
EU Trade Commissioner Maros Sefcovic said he would be heading to Brussels to attend the negotiations later in the day.
(Reporting by Philip Blenkinsop, Chris Thomas and Mrinmay Dey in Mexico City; Editing by Bernadette Baum)
