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Summary of U.S.-EU Trade Negotiations (January 2019)

Core Content

The United States initiated negotiations with the European Union (EU) in January 2019, with the goal of strengthening the transatlantic trade relationship to benefit American and European consumers, businesses, farmers, ranchers, and workers. These negotiations were based on the specific objectives outlined in the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (Trade Priorities and Accountability Act), particularly Section 102. The U.S. administration aimed to address both tariff and non-tariff barriers, achieve fairer and more balanced trade, and ensure effective implementation and enforcement of trade commitments.

Main Objectives

Trade in Goods

• Improve the U.S. trade balance and reduce the trade deficit with the EU.
• Increase transparency in import and export licensing procedures.
• Discourage trade-distorting import and export monopolies.
• Secure comprehensive duty-free market access for U.S. industrial goods.
• Expand market access for remanufactured goods.
• Ensure duty-free access for U.S. textile and apparel products.
• Promote regulatory compatibility to reduce trade burdens.

Sanitary and Phytosanitary Measures (SPS)

• Establish enforceable and science-based SPS obligations.
• Ensure transparency and public consultation in SPS regulations.
• Prevent the EU from foreclosing U.S. export opportunities through non-science-based restrictions.
• Encourage cooperation and information sharing on SPS issues.
• Create an active SPS Chapter Committee for addressing trade concerns.

Customs and Trade Facilitation

• Set high standards for customs and trade facilitation in line with WTO agreements.
• Ensure transparency by publishing customs laws and procedures online.
• Streamline customs procedures for low-value and express delivery shipments.
• Promote automation, electronic payment, and risk management systems.
• Establish mechanisms for appeals and uniform customs treatment.
• Encourage cooperation to combat duty evasion and customs offenses.

Rules of Origin

• Develop rules ensuring benefits of the agreement go to goods genuinely made in the U.S. and EU.
• Streamline certification and verification processes.
• Promote strong enforcement, particularly for textiles.

Technical Barriers to Trade (TBT)

• Apply WTO TBT Committee decisions on standards and transparency.
• Ensure non-discriminatory treatment of conformity assessment bodies.
• Prevent the EU from restricting U.S. exports through third-country standards.
• Establish an active TBT Chapter Committee for coordination and regulatory cooperation.

Good Regulatory Practices

• Ensure transparency and accountability in regulatory development.
• Promote impact assessments and evidence-based regulations.
• Encourage public comment and cooperation with regulatory advisory committees.

Transparency, Publication, and Administrative Measures

• Secure commitments for prompt publication of trade and investment-related laws and regulations.
• Allow meaningful public comment before finalizing measures.
• Establish mechanisms for reviewing and correcting administrative actions.

Trade in Services

• Secure fair and open conditions for services trade.
• Prohibit discrimination, restrictions on the number of suppliers, and local presence requirements.
• Include specialized sectoral disciplines to support U.S. delivery services.
• Maintain flexibility for non-conforming measures.

Telecommunications

• Promote competitive supply through transparent regulation.
• Ensure reasonable network access and technology choice for suppliers.

Financial Services

• Expand market opportunities for U.S. financial services.
• Improve transparency and predictability in EU financial regulations.
• Prevent restrictions on cross-border data flows and local computing requirements.

Digital Trade

• Ensure non-discriminatory treatment of digital products.
• Prevent government mandates on source code disclosure.
• Limit non-IPR civil liability for online platforms.
• Establish rules to prevent unjustified trade restrictions on digital goods.

Investment

• Secure important rights for U.S. investors in the EU.
• Eliminate barriers to U.S. investment in all EU sectors.

Intellectual Property (IPR)

• Seek strong IPR protection and enforcement commitments.
• Ensure the EU does not undermine U.S. market access through improper geographical indications or generic term protections.

Procedural Fairness for Pharmaceuticals and Medical Devices

• Ensure transparent and non-discriminatory reimbursement regimes.
• Guarantee full market access for U.S. products.

State-Owned Enterprises (SOEs)

• Define SOEs based on government ownership or control.
• Ensure non-discriminatory treatment in SOE transactions.
• Establish strong subsidy disciplines.
• Allow access to information on SOE ownership and support.
• Develop a fact-finding mechanism for SOE-related litigation.

Subsidies

• Promote transparency in subsidy practices.
• Encourage information exchange and cooperation on subsidy issues.
• Address capacity creation or maintenance inconsistent with market principles.

Competition Policy

• Maintain and implement rules against anticompetitive behavior.
• Ensure procedural fairness in competition law enforcement.
• Limit remedies for conduct outside the Party’s territory.
• Promote cooperation between authorities on enforcement matters.

Labor

• Require the EU to adopt internationally recognized core labor standards.
• Ensure non-discrimination and effective enforcement of labor laws.
• Prohibit imports from forced labor.
• Establish access to fair and transparent labor-related administrative and judicial proceedings.
• Include a Labor Committee and mechanisms for stakeholder participation.

Environment

• Establish enforceable environmental obligations.
• Ensure non-derogation from environmental protections.
• Promote sustainable fisheries management and conservation.
• Combat IUU fishing and harmful subsidies.
• Include public participation and a senior-level Environment Committee.

Anti-Corruption

• Commit to criminalizing government corruption.
• Promote transparency in financial records and ethical standards.
• Prevent tax deductions for corrupt payments.
• Encourage public participation in anti-corruption efforts.

Trade Remedies

• Preserve U.S. ability to enforce trade laws (AD, CVD, safeguards).
• Improve procedures to address trade remedy violations.
• Ensure transparency and due process in trade remedy measures.

Government Procurement

• Increase opportunities for U.S. firms in EU procurement.
• Ensure reciprocity in market access.
• Combat corruption in procurement processes.
• Maintain U.S. domestic purchasing programs and exceptions for national security, public morals, and health.

Small and Medium-Sized Enterprises (SMEs)

• Promote SME participation in trade and investment.
• Ensure access to fair and transparent trade procedures.
• Include SME-specific provisions in the agreement.

Dispute Settlement

• Ensure dispute settlement mechanisms are applied consistently across all enforceable obligations.
• Provide for administrative and judicial appeals in trade matters.

Conclusion

The U.S. is committed to a transparent, balanced, and reciprocal trade agreement with the EU, reflecting its statutory objectives and ensuring that the benefits of the agreement are realized by American businesses and workers. The negotiations will proceed with close consultation with Congress and include a wide range of commitments across various sectors, from goods and services to digital trade, investment, and labor standards.