Philip Blenkinsop

BRUSSELS, (Reuters) – The European Union experienced a “breakthrough” year with the United States. Even if some trade irritants remain, it now wishes to partner with its transatlantic ally in order to forge trade rules for the future.

A year on from Joe Biden’s defeat of Donald Trump in the U.S. presidential election, the two sides have suspended their disputes over aircraft subsidies https://www.reuters.com/business/aerospace-defense/eu-us-set-unveil-truce-17-year-aircraft-battle-2021-06-15 and steel and aluminium tariffs https://www.reuters.com/world/us-eu-expected-announce-deal-ending-steel-aluminum-tariff-dispute-sources-say-2021-10-30 and launched an alliance to cooperate on future technologies.

In an interview with Reuters Next, Valdis Dombrovskis, Executive Vice President of the European Commission stated that “one can certainly say this year was indeed a breakthrough for EU-U.S. Trade Relations.”

In steel, US tariffs have been replaced by tariff-free quotas that are based on historic volumes. Dombrovskis stated that the final result would be achieved in just two years.

Brussels also looked closely at “Buy American”, a plan by the United States to ensure that Federal agencies purchase American-made goods whenever possible. This has caused tensions between Canada and Mexico.

Dombrovskis indicated that the EU would examine Washington’s international obligations. Both countries are signatories of the WTO Agreement on Government Procurement.

Dombrovskis stated that there are many things to be aware of, however, he said that they are engaging in constructive dialogue so he is confident that the group can address any concerns or issues that may arise.

Japan, America, and the European Union relaunched Tuesday their trilateral partnership for non-market economies to deal with problems such as China. This work will include the development of new trade rules.

Dombrovskis stated that he would meet his counterparts within half a year in order to review the situation and determine next steps. China was not excluded from the discussions, but it would be the main focus.

Dombrovskis and the world’s top trade officials were due to meet in Geneva for the World Trade Organization’s ministerial conference this week, until Swiss coronavirus restrictions forced its postponement https://www.reuters.com/business/wto-postpones-major-meeting-over-covid-19-concerns-sources-2021-11-26.

It was the hope of the EU that it would emerge from this meeting with a group for reforming the WTO’s global trade rules. The EU also hoped to have results at the next meeting in two years.

Dombrovskis indicated that the bloc is seeking a revision of the law book to include green and digital economic transformations as well as industrial subsidies and state owned enterprises.

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