EU's willingness to negotiate trade issues vindication of Trump's policy: Ross

Fredrick Soto
July 28, 2018

After a meeting in Washington on Wednesday, the two agreed to launch a "new phase" in relations and work towards zero tariffs. According to the National Grain and Feed Association, China began canceling US soybean purchases as the import tariffs hit, lowering commitments to buy 366,000 metric tons of USA soybeans in the season that ends August 31 and cutting purchases by 66,000 tons in the following year.

The agreement come amid heightened tensions between the United States and EU.

U.S. Trade Representative Robert Lighthizer, a veteran of trade negotiations from former President Ronald Reagan's administration in the 1980s who is Trump's top trade official, told lawmakers in Washington that the United States could not afford to capitulate to China economically.

"This administration's tariffs and bailouts aren't going to make America great again, they're just going to make it 1929 again", he said.

The EU's pledge to import more soybeans from US farmers was the "dealmaker" in the agreement between European Commission President Jean-Claude Juncker and US President Donald Trump to stop the dispute and open trade talks, EU sources told EURACTIV.

Democratic Sen. Joe Donnelly said he supports the $12 billion payout to farmers, but urged the president to speed up trade negotiations and find a long-term solution soon to ease the pain. "China made $517 Billion on us past year".

"We have been through thick and thin together, through different administrations and political cycles".

"China is targeting our farmers, who they know I love & respect, as a way of getting me to continue allowing them to take advantage of the U.S.", Mr. Trump said on Twitter.

Juncker told the audience, "Our economies are more intertwined than at any point in history".

However, the European Union may still be in for a shock when it comes to the all important auto export industry.

Steelmakers' shares fell, with United States Steel falling more than 5pc in extended trading, and AK Steel Holdings sliding 2pc. In this sense, while Trump both walks the walk and talks the talk on old fashioned protectionism, the European Union is stuck in a rut between the modern rhetoric of free trade and the parochial values of protectionism.

After Juncker's visit to Washington on Thursday, Trump boasted of "breakthrough" results amid the ongoing trade war.

What's more, Hurt noted that weather in the Midwest has been good this summer for crops, causing yield prospects to rise, and in turn, crop prices to drop even further, in many cases to well below the cost of production.

A U.S. -EU deal on trade should give the European Union at least four months of respite from transatlantic tensions, crucially pushing past the U.S. midterm elections, a senior EU official said on Thursday. And more than 70 per cent of all foreign direct investment in the U.S. comes from Europe.

He criticized "worst-ever made" past trade deals reached between the USA and other countries. The plan for Europe to buy more natural gas from the U.S. has a security dimension. "But when it comes to services, the USA has a trade surplus of €45bn".

United States import tariffs of 25pc on steel and 10pc on aluminum imposed in March will remain in place during the talks, but Juncker added: "It is the first time that the Americans agreed to reassess the measure that they have taken in the steel and aluminum sector". US President Donald Trump on Thursday visited IL and Iowa, the nation's leading soybean-producing states.

"Take energy: In 2016, the first USA boat exporting American liquefied natural gas docked in the coast of Portugal".

The commission chief went on, "This is part of today's agreement: to increase the import of liquefied gas and soya beans". That would cut U.S. imports of European cars and auto parts in half, the commission forecast.

"We will always look for areas where we can work together on a mutually beneficial basis".

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