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France blocks trade talks with the US, angering EU partners

France is blocking the launch of trade talks with the US, exasperating its EU partners who fear a restart to a trade war with President Donald Trump, diplomats said on Friday.

France blocks trade talks with the US, angering EU partners
Diplomats fear a resumption of trade wars between Europe and the US. Photo: AFP

“The French are blocking, but they are isolated,” a European source told AFP after a Friday meeting of envoys from member states ended without an agreement.

The envoys are struggling to decide a mandate to launch the transatlantic negotiations given the opposition of Paris that fears domestic blowback just months ahead of European elections, set for May 22 to 26.

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Berlin however strongly wants the deal in order to placate Trump and avoid US auto tariffs that would punish Germany's cherished exports, a prospect Chancellor Angela Merkel has labelled “frightening”.

Pursuing a limited trade deal was the central part of a truce agreed in July when Trump and European Commission President Jean-Claude Juncker pledged no new tariffs following those on steel and aluminium.

“France is really testing the patience of the other member states to the limit,” an EU diplomat said, on condition of anonymity.

“It's quite daring to block something that everyone else wants,” the diplomat added. Talks were set to resume on Wednesday.

At Friday's meeting, French diplomats called for more time to discuss differences while the Germans argued that “waiting weakens the negotiating ability of Europeans”, the source said.

Paris is especially wary after the failure of talks on TTIP, a far more ambitious transatlantic trade plan, which stalled amid fears a deal with Washington would undermine EU food and health standards.

As a condition French President Emmanuel Macron last week demanded a clear signal that TTIP is obsolete, though some member states would like the option to revive those talks to survive.

France is also insisting on environmental guarantees if the trade negotiations take place, diplomats said.

But diplomats added that Macron had stepped back from calling for Washington's adherence to the Paris climate accord, which Trump pulled out of  in 2017.

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TRADE

Norway and UK strike post-Brexit trade deal

Norway and the United Kingdom have struck an agreement on a free trade deal, the Norwegian government announced on Friday.

Norway and UK strike post-Brexit trade deal
Erna Solberg outside 10 Downing Street in 2019. (Photo by LUDOVIC MARIN / POOL / AFP)

Negotiations over the agreement have been ongoing since last summer, and the Norwegian government said that the deal is the largest free trade agreement Norway has entered into, outside of the EEA agreement. 

“The agreement entails a continuation of all previous tariff preferences for seafood and improved market access for white fish, shrimp, and several other products,” the Ministry of Trade and Industry said in a statement.  

One of the sticking points of the negotiations was Norway wanting more access to sell seafood in the UK, while the UK wanted more access to sell agricultural products like cheese.

The latter was a problem due to Norway having import protection against agricultural goods. 

“This agreement secures Norwegian jobs and value creation and marks an important step forward in our relationship with the UK after Brexit. This is a long-term agreement, which at the same time helps to accelerate the Norwegian economy,” Prime Minister Erna Solberg said in a statement.  

 The United Kingdom is Norway’s second most important single market, after the EU. In 2020 Norwegian companies exported goods worth 135 billion kroner to the UK and imported around 42 billion kroner of goods from the UK. 

Norway has given Britain 26 quotas on agricultural products, but not for mutton and beef. The agreement does not increase the UK’s cheese quotas, state broadcaster NRK have reported. 

The agreement will still need to be signed by both the Norwegian and UK parliament. 

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