Trade talks have quite literally, been the “talk of the town”. Essentially it refers to negotiations and discussion held between different countries or groups of countries. The aim being to improve trade relations, resolve issues that affect international trade or reduce trade barriers, such as quotas and tariffs. These talks also address certain issues such as intellectual property, tariffs as well as market access. These trade talks are most often conducted at regional, bilateral or multilateral levels.
Taking future talks to the next level
The European Union and the U.S. are moving toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday, potentially moving President Donald Trump closer to another major trade agreement on the heels of the one he just unveiled with Japan. European negotiators were hoping to reach an agreement to dodge the 30% tariff rate Trump has said he would impose on imports from the 27-nation bloc on August 1.
There could be concessions for sectors like aircraft and lumber as well as some medicines and agricultural products, which would not face tariffs, the diplomats said. Washington does not, however, appear willing to lower its current 50% tariff on steel, they said. As talks continued, the European Commission said it would press on with potential countermeasures in case a deal was not reached. EU member states were set to vote on 93 billion euros of counter-tariffs on U.S. goods on Thursday, European diplomats said.
A broad majority of members support using anti-coercion instruments (ACI) if there is no deal, they said. The ACI is a specific regulation of the European Union that was proposed in December 2021 with adoption during November 2023. It only entered into full force in December 2023. Trump was aiming to secure an agreement on the heels of a complicated deal reached with Japan, the largest foreign investor in the U.S.
Japan’s interest in things
That deal included a $550 investment and loan pledges from Japan and its commitment to buy 100 Boeing airplanes and boost purchases of U.S. agricultural products. According to the Department of Agriculture, the definition of agricultural products can refer to commodity crops such as wheat and corn, poultry, livestock as well as byproducts like dairy and eggs, etc.
That investment – to be spent at Trump’s discretion – would focus on key industries like energy, semiconductors, critical minerals, pharmaceuticals and shipbuilding, the White House said on Wednesday. Tariffs on Japan’s auto sector will drop from 27.5% to 15% as part of the agreement, reviving hopes for similar treatment for European cars.
President Trump’s take on matters
U.S. automakers signaled their unhappiness with the Japan deal, raising concerns about a trade regime that cuts tariffs on Japanese auto imports while leaving 25% tariffs on imports from their plants and suppliers in Canada. Automobile stocks led the climb of European shares after the Japan deal spurred hopes that the U.S. was budging over tariffs on EU cars. EU officials have previously said Washington has shown little sign of doing so. Trump, however, has appeared open to a range of options as the U.S. negotiates trade deals.
The Republican president said late on Tuesday that other countries would be coming to Washington for talks this week. Governments were scrambling to close trade deals before next week’s deadline that the White House has repeatedly pushed back under pressure from markets and intense lobbying by industry.
Trade talks in most instances follow specific formats, but it is dependent on the total number of parties involved as well as their specific goals. This can include The European Union, and the U.S. are moving toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday, potentially moving President Donald Trump closer to another major trade agreement on the heels of the one he just unveiled with Japan. bilateral trade talk as well as multilateral trade talks. Multilateral trade talks refer to a magnitude of countries from various different regions negotiating within the framework of the international organization like the WTO.
GCN.com/REUTERS.