EU Negotiating Principles Include Ag, Ignoring EU Political Constraints

The U.S. trade representative will negotiate with the European Union to seek to "secure comprehensive market access for U.S. agricultural goods in the EU by reducing or eliminating tariffs," and eliminate "non-tariff barriers that discriminate against U.S. agricultural goods," the Office of the U.S. Trade Representative said.

Objectives for negotiations talk extensively about sanitary and phytosanitary measures, which have prevented many U.S. producers from selling in the EU, whether because of GMO technology or hormone treatments of livestock. USTR Robert Lighthizer says he will "obtain commitment that the EU will not foreclose export opportunities to the United States with respect to third-country export markets, including by requiring third countries to align with non-science based restrictions and requirements or to adopt SPS measures that are not based on ascertainable risk." He also said he will seek the expeditious removal of "unwarranted barriers that block the export of U.S. food and agriculture products."

But Lighthizer's EU counterpart, Cecilia Malmstrom, also could not be more clear when she said that agriculture is outside the scope of the talks, that the member countries do not agree to tackle that issue (see 1901100022).

How can those positions be reconciled? The document says "we may seek to pursue negotiations with the EU in stages, as appropriate, but we will only do so based on consultations with Congress."

A spokesman for the EU in Washington did not reply to a request for comment by press time. According to an infographic the EU released for the annual Farm Bureau meeting Jan. 14, the EU imported $13 billion worth of food, beverages and agricultural commodities from the U.S. in 2017, while it exported $30 billion to the U.S. in those categories.

The 14-page document makes no mention of cars or trucks, which have been what the president has returned to again and again.

The American Soybean Association called the agricultural language in the document a "strong move." American Soybean Association President Davie Stephens, a soybean grower from Clinton, Kentucky, said, “ASA appreciates USTR and the Administration’s commitment to keeping agriculture in these negotiations at a time when soybean growers are looking for long-term solutions to bounce back from a prolonged period of instability."

In Customs and Facilitation, the USTR said there should be new disciplines on timing of release, automation and use of guarantees, as well as the use of customs brokers and reusable containers. There should be reduced import, export and transit forms, enhanced harmonization of customs data requirements and advanced rulings. It will be seeking the ability to pay duties, taxes and fees electronically.

As USTR did in the Japan negotiating priorities, he said he'll be seeking simplified customs procedures for low value goods and "a more reciprocal de minimis shipment value." Currently, the U.S. de minimis level is $800, and the former de minimis level of 22 Euros for the purpose of the Value Added Tax has been removed so that, by 2021, there will be no de minimis at all in Europe on taxes.