EU is ready to buy more US soybeans to reduce tensions

Brussels wants to increase purchases of US goods by €50 billion to resolve a “problem” in trade relations, the EU’s chief negotiator said, adding that the bloc was making “some progress” towards a deal, the Financial Times reports.

However, Maroš Šefčovič, the EU’s trade commissioner, hinted in an interview with the Financial Times that the bloc would not accept the United States maintaining 10% tariffs on its goods as a fair end to the trade talks.

Šefčovič said the US and EU had made progress in several rounds of face-to-face and telephone talks after President Donald Trump first imposed and then suspended 20% tariffs on the bloc. He added that his “ambition” was to reach a “balanced and fair” deal with the White House.

Šefčovič said the main argument he made to US Trade Representative Jamison Grier and Commerce Secretary Howard Latnick was to include US services exports to the EU, which reduces the overall trade deficit with Europe to around €50 billion.

That could be quickly offset by deals to increase purchases of US gas and agricultural products, he said.

“If we look at the €50 billion deficit as a problem, I believe we can really … solve this problem very quickly through purchases of LNG, through some agricultural products like soybeans, or in other areas,” Šefčovič said.

“What’s really important is that I think we’ve started to understand each other a little bit better — where they stand, where they’re coming from? And I think they understand us a little bit better,” he added. “I think we have a little bit more understanding of the numbers now.”

But he warned that it would be “very difficult” to reach a deal that would be “clearly good and acceptable to our member states and the European Parliament.”

The European Commission is negotiating the trade measures on behalf of the 27 member states. Šefčovič said all capitals “want us to negotiate” but were ready to support further countermeasures if there was no deal.

The Commission privately briefed member state ambassadors on Wednesday evening about possible incentives for the US, as well as the preparation of a potential new package of tariffs against America.

Tags: EU, soybean, USA