EU-US Trade Relations

On the 18^th of January the European Commission has published the draft negotiating mandates for the EU-US trade relations.

The European Commission will ask the Council two separate negotiating mandates on:

- Conformity assessment and Annex  

- Industrial tariff elimination and Annex

An EU-US dialogue will also take place on standards.

Both the EU and the US have low tariffs on industrial goods. However, the removal of tariffs on industrial goods will be particularly beneficial for small and medium-sized enterprises (SMEs) as this will reduce their costs of exporting.

The European Union and the United States have their respective practices of conformity assessment. Differences in approaches to conformity assessment can result in additional costs and lengthy and complex administrative procedures. Obstacles were specifically found in the machinery, equipment, electrical and electronic sector. A reduction in the costs of conformity assessment can bring significant economic benefits in particular for SMEs.

The Commission proposal on the elimination of industrial tariffs is good news for the European export-oriented industry. However, the risk that the US may unilaterally impose tariffs or quotas on EU exports of cars and car parts is looming. The Commission has been very clear in this regard: any unilateral imposition of tariffs or quotas on EU exports of cars and car parts may seriously jeopardize the outcome of the negotiation.

The Commission will soon launch a stakeholder consultation. In addition, the Commission will invite stakeholders to provide feedback on potential initiatives with the US in the regulatory cooperation area. CECE will monitor the next steps of DG Trade, in cooperation with Orgalim of which CECE is an associate member. Orgalim is a member of the Expert Group on EU Trade Agreements. Participation of Orgalim in this close group will allow CECE to receive information on the state of affairs of the current negotiation.

On the 30^th January, the European Commission has published a progress report on the state of play of the EU-US relations.