Brussels ‘ready’ for US-EU trade deal as negotiators to meet

AARHUS: The EU is “ready for a deal” with the United States, European Commission president Ursula von der Leyen said Thursday before negotiators met in Washington ahead of a July 9 deadline.

Separately, German Chancellor Friedrich Merz urged the European Union to strike a “quick and simple” deal on tariffs with the United States, with just days to go before a negotiating deadline.

EU trade chief Maros Sefcovic is currently in Washington and due to meet his US counterparts later on Thursday. “We want a negotiated solution, but you all know that at the same time, we’re preparing for the possibility that no satisfactory agreement is reached,” von der Leyen told reporters in Aarhus, Denmark.

“What we are aiming at is an agreement in principle,” she told a press conference after being asked if the EU wanted a brief agreement with the United States ahead of the July 9 deadline and then to hash out the details afterward.

‘QUICK AND SIMPLE’

“It is better to achieve a quick and simple solution than a lengthy and complicated one that remains in the negotiation stage for months,” Merz said in Berlin.

Merz said a quick deal was needed “to remove the burden of tariffs on our businesses, which are far too high”.

He added that the current talks are “not about a minutely detailed trade deal” but “the quick resolution of a tariff dispute”.

A speedy agreement was needed, he said, “in particular for our country’s key industries: chemicals, pharmaceuticals, mechanical engineering, aluminium, steel, automobiles”.

The EU has until Wednesday next week to reach a deal or see swingeing US tariffs kick in on a majority of its goods.

If no agreement is reached, the United States has said it will impose an additional of 20 percent on the EU on top of a base rate of 10 per cent.

If no agreement is reached, the default tariff on EU imports is expected to double to 20 per cent or even higher – Trump having at one point threatened 50 per cent.

Last month, Germany’s central bank warned that Europe’s biggest economy could face two more years of recession if the trade war with the US escalated.

TRADE WAR

The remarks by the EU chief and the German chancellor came as a spokesperson for Chinese commerce ministry said on Thursday that China is assessing the trade between the United States and Vietnam, and will safeguard its own rights and interests if needed.

At the same time, the ministry spokesperson, He Yongqian, said China firmly opposes any party reaching a deal at the expense of Chinese interests.

Read more: Trump says Vietnam to face 20pc tariff under ‘great’ deal

On the other hand, Mao Ning, who is the foreign minister spokesperson, also talked about China’s interests.

“China believes in equal-footed dialogue and consultation as the way to address economic and trade disputes,” she noted.

However, she also made it clear that how any two countries should reach to an arrangement. “That said, relevant negotiations and agreements should not target or harm the interests of any third party.”

EUROPE MUST STEP UP

Meanwhile, Ursula also discussed the subject of defence, saying Europe must beef up its aid to Ukraine following Washington’s decision to pause some weapons shipments.

“It’s a clear message to step up our own support, ramping up our European defence capacities, not only at the level of the European Union, but at the continental level,” the EU said.