Insiders believe both sides know the obstacles before them are insurmountable but are pressing ahead with negotiations to try to stop Donald Trump slapping 25 percent tariffs on European cars. Such a move from Washington would lead to a tit-for-tat response from Brussels and ignite a full-blown trade war. The two sides are taking very different positions with the US seeking greater access to EU agricultural markets but Brussels keen to leave food out of the talks. On the other side of the negotiating table, Brussels wants tariffs on industrial goods, including cars, to be scrapped but the Americans see this as a red line issue.
European Parliament trade committee chairman Bernd Lange admitted: “It’s a bit of a show. I don’t think that these talks can lead to a result.
“All in all, it’s a concept to de-escalate, but you can’t seriously negotiate with it.”
Mr Trump struck a truce with European Commission President Jean-Claude Juncker not to impose new tariffs last July and maintaining that position appears to be the main priority now.
EU trade commissioner Cecilia Malmström has tried to put a positive spin on developments.
She said: “We’re advancing, we have made some very important progress there and there’s a process that is positive, I think.”
But experts believe the different objectives give little hope of real progress.
Peter Chase, a senior fellow at the German Marshall Fund of the United States, told Politico: “Both sides put their cards on the table but they seem to be playing different games.”
A US industry official said both sides need to work harder to find common ground or the exercise risks running out of steam.
He said: “We’re at a standoff here and I don’t see much political will on either side to break that down.”
Former US trade counsel Stephen Claeys said: “A win for the EU is anything that excludes them from the tariffs on autos.
“They’re not being driven by wanting a deal in and of itself, they’re being driven by wanting to avoid those tariffs.”