Reclaiming the Shared EU-US Trade Agenda
The EU’s Trade Commissioner Phil Hogan chose Washington as his first destination outside of the EU since taking on his new role in December. During his visit, he advocated for resetting the transatlantic trade agenda and reiterated the EU’s readiness to intensify EU-US trade cooperation, from conformity assessment and tariffs/non-tariff barriers to trade to WTO reform.
EU, US and Japan acting together to address distortions to global trade
His visit started with a trilateral gathering the trade chiefs of the EU, the US, and Japan, during which they announced a major agreement to strengthen existing rules on industrial subsidies and condemned forced technology transfer practices.
Hogan said that “this Joint Statement is an important step toward addressing some of the fundamental issues distorting global trade. The EU has been arguing consistently that multilateral negotiations can be effective in resolving these problems. I welcome the fact that the United States and Japan share this view. I am grateful to Ambassador Lighthizer and Minister Kajiyama for their constructive collaboration. This Statement is also a symbol of a constructive strategic collaboration between three major players in global trade.”
From conformity assessment to investment screening and AI, Hogan lays out a clear road-map for resetting the transatlantic trade relationship
Commissioner Hogan then met with leading Members of the Administration and US Congress to look at ways to improve the current transatlantic business environment.
Hogan said that “these meetings were in the main both positive and productive. They confirmed that there are powerful and influential voices on both sides of the Atlantic calling for political leadership to refresh, recalibrate and generally reclaim the shared trade agenda of the EU and US in the coming months.”
His visit also included a variety of meetings with other U.S. and European stakeholders, and a public event at the Center for Strategic and International Studies (CSIS).
In his speech at CSIS, he stressed that European Commission President Ursula von der Leyen is “committed to a positive, balanced, and mutually beneficial trading partnership with the United States.”
He added that “no other market is as free and open for US businesses as the EU. Where else are you as welcome? In the last decade alone, the EU attracted over 58% of total US foreign investment. US companies freely choose to invest more in the EU than in all other markets combined.”
He then highlighted some of the areas where the EU is willing to intensify EU-US trade cooperation: “We want to finalize our negotiations on conformity assessment, a long-standing US ask. We also remain ready to discuss tariffs and reducing non-tariff barriers. We need more convergence in relation to standardization and in the regulatory field. We are keen to intensify our cooperation on technology, covering areas such as semiconductors, artificial intelligence, additive manufacturing, and quantum technology… We are eager to learn from the US experience on investment screening. We need to protect our trusted transatlantic trading and investment space.”
He however warned that he was “coming under pressure to defend the EU’s level of openness given that our European businesses can be hit with unjustified tariffs and restrictions at a moment’s notice. And let me be clear that we reject the US labeling the EU as a security risk in order to justify the imposition of tariffs. This narrative is hurtful to both our people.” He added that “we regret the choice of the US to move ahead with tariffs in the Airbus case, and the recent announcement to potentially subject additional EU products to tariffs. This leaves the EU with no alternative but to follow through in due course with our own tariffs in the Boeing case, where the US has been found in breach of WTO rules.”
Useful links:
- EU Now Podcast on “Refreshing Transatlantic Trade Relations”
- Speech by Commissioner Hogan at CSIS
- Joint Statement of the Trilateral Meeting of the Trade Ministers of Japan, the United States and the European Union
- Photo album of the visit on Flickr
