MNI SOURCES: EU Summit May Back Industry Tariffs Talks With US

By David Thomas

     BRUSSELS (MNI) - Some EU countries including Germany want to agree a

mandate at this week's Brussels summit for a 'limited-scope' negotiation with

the U.S. focused on reducing industrial tariffs despite French reluctance to

proceed immediately.

     "There is a push by Germany to have a mandate as soon as possible while

France wants to take more time and leave any decision until after the European

Elections (May 23) - say in early June," one official said

     Germany is hoping that such a move will help preempt possible moves by the

Trump administration to go ahead with tariffs on EU car imports. The U.S.

president is currently still considering a secret report from the Commerce

Department on whether European car exports pose a national security threat.

     If leaders do push for an early mandate, it could be signed off by EU trade

officials by mid-April.

     It would then be up to the EU and U.S. as to when the tariffs talks

themselves would get underway.

     "My bet would be that we go for something now since Germany is backing it,"

said an EU source.

     France, on the other hand, is said to be more concerned at the potential

domestic political impact of the announcement on elections to the European

Parliament.

     --FOLLOW-UP TO JUNCKER-TRUMP TALKS

     Contacts between senior EU and U.S. officials have been ongoing since the

meeting between European Commission President Jean-Claude Juncker and President

Donald Trump in Washington last July, and progress has been achieved in areas

such as regulatory cooperation, commitments to WTO reform as well as increased

EU access for U.S. soybeans and liquefied natural gas.

     "Basically, the mandate, would be delivering on the only thing that is

still outstanding from the July meeting," a Council source said.

     The debate comes as EU leaders discuss plans for a comprehensive European

industrial policy which will address increasing fears that the eurozone is being

left behind by the rise of China and by a more vigorous U.S. economy. The agenda

includes competitiveness, technology and security issues as well as trade.

     In an early draft of the conclusions of this week's summit seen by MNI, the

leaders state that they "should continue to push for an ambitious trade policy

in an open rules-based multilateral trading system."

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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