U.S. and European trade negotiators say progress, but no breakthrough in tariff talks in Paris

Paris - Europe and the United States said progress had been made but there was no breakthrough during a meeting in Paris to negotiate a settlement of a tense tariff quarrel with the consequences of global economic powers between the two global economic powers.

The EU's top trade negotiator Maroššisefčovič met with his U.S. Trade Representative, U.S. Trade Representative Jamieson Greer on Wednesday at a meeting of the Organization for Economic Cooperation and Development.

"I'm glad the negotiations are developing rapidly," Greer said. EU negotiators showed that "the EU is willing to work with us to find a concrete direction to achieve reciprocal trade. I look forward to continuing constructive engagement in the coming days and weeks."

"We are moving in the right direction," Šefčovič said in a press conference. He said a video conference between itself and Greer will be held after the ongoing technical meeting between the EU and U.S. negotiators in Washington to "evaluate progress and the way forward of the charter."

It is unlikely that Brussels and Washington will reach a substantial trade agreement in Paris. The problem of dividing them is too difficult to solve quickly.

President Donald Trump is regularly confused about the ongoing trade deficit between the U.S. and the EU, which last year was a record $161 billion, according to the U.S. Department of Commerce.

Trump blames the gap between goods sold in the United States and things purchased from Europe on unfair trade practices and has frequently criticized the EU for its 10% tax on imported cars. The U.S. tax on imported cars is 2.5%, until it is raised to 25% in April. The EU argues that it purchased US services, especially in the technology sector, almost overcame the deficit.

The Trump administration's surprise tariffs on steel last week shocked global markets and complicated ongoing tariff negotiations between Brussels and Washington, the EU said on Monday it was preparing for "opposition" for the United States

The EU has offered the US a "zero" deal, which will cause both parties to terminate tariffs on industrial products, including cars. Trump rejected the idea, but EU officials say it is still on the table.

The EU can buy more liquefied natural gas and defense items from the United States and reduce tariffs on cars, but it is impossible to call a scrap VAT phone, which is similar to a sales tax or opening the EU to US beef.

"We have a few weeks of discussion and negotiations," French Trade Minister Laurent Saint-Martin said in Paris before the OECD meeting on Wednesday. "If the discussion and negotiations are not successful, Europe can also respond to U.S. products and services."

Greta Peisch, general counsel for the Biden administration’s U.S. Trade Representative, said that if the Trump administration is “looking for reasons not to impose tariffs on the EU, a zero-to-zero proposal could provide an improved approach.”

But Peisch, now a partner at the law firm Wiley Rein, wants to know: "How motivates the United States to reach an agreement with the EU?" After all, Trump has developed long-standing dissatisfaction and complaints about EU trade practices.

One of his anger's targets was VAT, similar to U.S. state sales tax.

Trump and his advisers think the vat is unfair because they have imposed a collection of American products. However, vats are set at the national level rather than by the EU and are suitable for domestic and imported products and are therefore traditionally not considered a trade barrier. The administration has little chance to overhaul its tax system to appease Trump.

Similarly, Europeans may reject the requirements of food and safety regulations that U.S. sees Washington as a trade barrier. These include beef, chlorinated chicken and genetically modified foods that are prohibited from hormonal feeding.

“When you start talking about chickens, GMOs, or car safety standards, you’re talking about how countries choose to regulate their economy,” said William Reinsch, a U.S. trade official now at the Center for Strategic and International Studies. "We think it's protectionists. They think it keeps their citizens healthy...it's been 60 years.''

___

McNeil