EU Trade Commissioner Maroš Šefčovič on US Tariffs, China Trade Deficit, and Mercosur Deal

EU-US Trade Relations and Tariffs

• 💡 The EU and US are not each other's problem regarding steel and steel products, as exports between them are minimal.
• 🎯 The focus is on addressing overcapacities that are harming steel production in both regions.
• 🤝 The EU has proposed returning to a framework of trading on MFN or zero levels while jointly addressing global overcapacities.
• ⚙️ The EU has sent a list of product codes to the US where tariffs could potentially be lowered, particularly for the machinery sector, but concrete negotiations are pending.

Digital Regulations and Trade Barriers

• ⚖️ The US has linked progress on steel and aluminum tariffs to movement on regulations for digital industries, which the EU views as non-tariff barriers.
• 🇪🇺 The EU emphasizes that its tech regulations are adopted democratically and will be protected, asserting digital sovereignty.
• 🤝 The EU aims to ensure US companies are treated fairly and non-discriminatorily, with discussions on using settlements over fines.

EU-China Trade and Economic Security

• 🇨🇳 The EU is in close contact with China regarding rare earth minerals and export controls, with initial reports of general licenses being issued.
• 📈 The EU is seeking more granular information to evaluate the process and has argued that China's previous export control requirements were too intrusive.
• ⚠️ The EU's message to industry is to prepare for security premiums, stockpile, and diversify to mitigate costly dependencies.
• 📉 The EU views the current €300 billion trade deficit with China as unsustainably high and is exploring possibilities to address it.
• 🔍 An import surveillance task force is monitoring inflows of goods from China to inform next steps.

Mercosur Trade Deal Prospects

• 🇧🇷 The EU is working diligently to finalize the Mercosur trade agreement, viewing it as a significant opportunity for European exporters and critical raw material accessibility.
• 🚜 The agreement aims to address high tariffs faced by EU agri-food exports to Mercosur countries, with concerns from the farming community being addressed.
• 📈 The EU hopes to conclude the year with this major free trade agreement, emphasizing its positive implications for citizens and businesses.
• 🚀 The EU is optimistic about the Mercosur deal, considering it too beneficial to abandon after 25 years of negotiation.