Trade Committee Chair: Parliament expects WTO compatible results at EU-US summit 

"In this turbulent geopolitical climate, we need to grasp what is possibly the last remaining opportunity under the current EU Commission and US administration to deliver solutions on outstanding trade irritants. Yet, we should do so staying true to our values, our regulations and our commitment to the international trading system. A critical minerals agreement with the US would level the playing field and give companies based in the EU the opportunity to take part in US supply chains for the production of batteries for e-vehicles and would thus undo some of the damage caused by the Inflation Reduction Act (IRA). Such an agreement could also help us to join forces on improving the protection of labour rights in our critical mineral supply chains. Nevertheless, this needs to fully respect the multilateral rules and mechanisms developed, namely by the International Labour Organization, our own respective regulatory approaches and can only happen in partnership with our trading partners.

A second main deliverable could be a framework for a future Global Arrangement on Sustainable Steel and Aluminium (GSA). This should be an intermediate step towards a solution that would permanently lift Trump’s illegal 232 tariffs and the corresponding EU countermeasures. This would bring relief and legal certainty for many sectors on both sides of the Atlantic that have suffered a lot in the last few years. Yet, we should not find an agreement at any cost. First, any agreement should be fully WTO compatible. This means that if we use our existing trade defence instruments to tackle non-market excess capacity, these should remain based on objective investigations and not on political considerations. In no way should the EU agree to a framework that would undermine the WTO, weaken the multilateral trading system and lead to even more protectionism and fragmented globalisation. An agreement should also protect and uphold existing Union legislation and that includes the Carbon Border Adjustment Mechanism.

If concluded, both agreements will need to be EU-only agreements and would need to get consent by the European Parliament before they apply. WTO compatibility, the preservation of our own regulatory independence as well as the contribution to more sustainable trade will be key considerations for the European Parliament judging both agreements. We stand ready to act quickly on the outcome of the summit."

Background

The President of the European Council, Charles Michel, and the President of the European Commission, Ursula von der Leyen, representing the EU, will meet US President, Joe Biden, in Washington DC for the 27th EU-US summit on 20 October. The last EU-US summit took place in Brussels on 15 June 2021. In a resolution adopted in September, the Parliament called on the Commission to tell the US Government that an agreement on critical minerals should be considered just one of the first steps towards addressing all of the EU’s concerns about outstanding trade frictions in EU-US relations.

Further information:

Office of Mr Bernd Lange (S&D, Germany), Chair of the Committee on International Trade, email: bernd.lange@europarl.europa.eu tel: +32 228 45 555