Displaying items by tag: trade talks

Donald Trump has paused a proposed 50% tariff on EU goods, extending the negotiation deadline to 9 July after a phone call with EC president Ursula von der Leyen. She requested more time to reach a deal, which Trump agreed to, calling the EU ‘willing to negotiate’. While both sides seek a resolution, the USA remains firm on maintaining a 10% base tariff, rejecting the EU’s recent offer to eliminate industrial tariffs and boost cooperation in AI and energy. Trump’s stance stems from concerns over the EU’s significant trade surplus and regulatory barriers. Meanwhile, the EU has approved retaliatory tariffs worth billions, set to begin on 14 July if talks fail. The escalating tensions risk sparking a costly trade war, which the IMF warns could shrink GDP on both sides. EU and US officials are set to meet next month in Paris to seek resolution. In preparation for these, the EU has requested firms to give details of their dealings with US companies: see

Diplomats have said that EU and South American negotiators will meet in Brasilia on 4 September for in-person talks, aiming to finalise the EU-Mercosur trade deal. This agreement, two decades in the making, has faced numerous delays due to a number of concerns expressed by each side. An EU diplomat expressed optimism about concluding the deal by the end of the year. The March visit to South America of Emmanuel Macron, who criticised the deal, paused negotiations until after the EU elections in June. Key issues remain, including European protection of food product names and Brazilian opposition to an EU anti-deforestation law. Farmers in France, Germany, and Belgium have protested against competition from cheaper South American imports. Both EU commission president Ursula von der Leyen and Brazilian president Luiz Inacio Lula da Silva are committed to concluding the agreement.

UK farmers have sounded the alarm over reports the Government plans a trade deal with Australia which might make its food and farming imports cheaper. The move would be part of a free trade pact with Australia that the Government hopes will be a springboard for similar deals with other countries. But UK farming unions have warned of ‘irreversible damage’ from a bad deal. There is speculation the Cabinet is split over the move. As with many countries, farming imports from Australia face tariffs - making lamb and beef more expensive. UK care of livestock has far higher standards, and avoids hormonal additions. In a post-Brexit world, the Government has now indicated that farmers may have to prepare for the lowering of tariffs on agricultural imports. The NFU warned that its members will struggle to compete if zero-tariff trade on lamb and beef goes ahead.

Negotiations for a post-Brexit trade deal between the UK and EU are expected to continue next week as the deadline draws nearer. The two sides resumed talks in London this week, with a UK government source saying they were in the ‘final stage’. But big gaps still remain, and the UK described the EU’s position on fishing access as ‘wholly unrealistic’. Boris Johnson is prepared to move forward without a deal. If nothing is agreed, the UK will trade with the bloc on World Trade Organisation rules - leading to tariffs on many imports and exports, which could push up costs for businesses and consumers. Both sides say they want to avoid this outcome, but the EU will not do a deal ‘at any price’. Mr Johnson said the UK will prosper either way.