EU to end trade talks if U.S. imposes car tariffs

The European Union (EU) will end trade negotiations with the United States if the latter imposes tariffs on car imports, European Trade Commissioner Cecilia Malmstrom said on Friday.

The European official made the remarks to media before Friday afternoon's informal meeting of the trade ministers of the EU member states, which will discuss issues related to the mandate for trade negotiations with the United States.

"We are in a very delicate situation," said Malmstrom, stressing that the negotiations will cease if the U.S. imposes tariffs on car imports, "this is clearly stated in our mandate."

"Currently, the U.S. is busy with trade negotiations with China, so we have not been able to talk," said the European official, adding that according to the White House communique, "while we negotiate, we should not impose any tariffs against each other." EU trade ministers gathered on Thursday and Friday in Bucharest in an informal meeting to discuss the modernization process of the World Trade Organization (WTO) and EU-U.S. trade relations.

Declaring that no decision will be taken at the informal meeting in Bucharest, the EU commissioner said that the decision would be taken "in a few weeks".

"I hope the ministers will feel ready soon enough to make a decision. We have not yet confirmed a date, but we have to start negotiating," said Malmstrom.

Regarding the new agreement with the U.S., Malmstrom said that the proposal of the Commission is public, but that there will be some additions.

"It is very clear that it should cover industrial goods, and it will not include agricultural products as decided at the White House," she said, stressing that "it is a limited agreement that we hope to be able to complete quickly."

Ministerial informal meetings are a common practice of each Presidency of the EU Council to provide the appropriate framework for a common reflection and exchange of views on issues of interest at European and international level. Romania is the current EU Council Presidency.