The European Union countries have agreed to start new trade talks with the US. The EU Commission have now the formal authorisation to proceed with the matter.
But this situation is still facing resistance from France and Belgium. The France President Emmannuel Macron has said that he objects the talks because of the US withdrawl from the Paris Agreement in 2017.
And the issue is also about agricultural goods. The US wants them be part of the trade deal and the EU is not interested including them. It is also believed that the EU elections in May will increase the rethorik of protectionism in the agricultural products in France and in Belgium.
According to New York Times, the US Congress has made clear that it will not ratify any trade agreement with the EU that does not include agriculture. The Trump’s administration have been insisted to include them in the trade deal.
Last week the US Goverment announced that they are planning to propose new tariffs regarding civilian aircraft and agrigoods like French cheese and Italian olive oils. The reason for this was the WTO research, which found that the EU subsidies to Airbus (AIR) have had negative impact on the US trade. On the other hand, the WTO has shown that this is vice versa with the US subsidies in Boeing.
On the agenda there is also the tariffs proposed to the EU car import to the US.
Germany, the biggest automanufacturing country in the EU, increased its car production to 451 400 units in March 2019. The GDP from manufacturing in general was 171 billion euros during the fourth quarter of 2018.