EU sets out plans for \'limited\' US trade deal

EU sets out plans for 'limited' US trade deal

AFP  |  Brussels 

The EU on Friday published its negotiating plans for a free trade deal with the United States, part of an effort to avert a trade war with US

The effort is also part of an effort to stop Trump from slapping tariffs on European car imports, a danger that has especially unnerved export powerhouse

"It is not a traditional (trade deal)... it is a limited but important proposal engaged on industrial goods tariffs only," EU told reporters.

The process however has got off to a rocky start, with the US side last week including in their plans, which is an absolute no-go for the Europeans.

"In this mandate, we are not proposing any reduction of tariffs on agriculture. That area was left outside," Malmstrom insisted.

The 17-page mandate submitted by the US also included other demands and charges that are unacceptable for the EU, including that stop manipulating foreign exchange rates.

Given the split, the EU is entering the negotiations with trepidation, especially since the threat of auto duties is still very much alive in

The commission handles trade negotiations for the EU's 28 member states and the plans must now be approved by the national governments before negotiations actually start with

and member states are wary after the failure of the so-called TTIP talks, a far more ambitious transatlantic trade plan which stalled amid fears a deal with would undermine EU and health standards. Opposition by activists has already resurfaced with warning that "there can be no trade-offs on standards" in the deal.

EU governments were shell-shocked last year when Trump imposed tariffs on metals imports as part of his "America First" protectionist vision. responded by slapping counter-tariffs on more than USD 3 billion in US exports like bourbon, blue jeans and motorcycles.

But Trump and in July called a truce, agreeing that as both sides pursued a trade deal, neither would impose additional tariffs.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 18 2019. 19:01 IST