EU takes agricultural subsidies off the table in trade talks with US

The European Union’s top trade negotiator said Wednesday that the political union was ruling out discussing its agricultural subsidies during upcoming talks with the Trump administration. The EU official also said that the White House had not pledged to hold off on potential auto tariffs until the talks were complete.

“We have made very clear agriculture will not be included,” EU Trade Commissioner Cecilia Malmstrom told reporters Wednesday. She made the comments following a meeting in Washington with Japanese Minister of the Economy Hiroshige Seko and U.S. Trade Representative Robert Lighthizer.

Domestic growers have long complained about the EU’s protectionist policies, such as preventing U.S. cheesemakers from using European names for their products, and have pressed the White House to address them.

Wednesday’s meeting was officially to discuss World Trade Organization reform, but it comes as the Trump administration is gearing up for talks with both the EU and Japan on new trade deals. The administration has held off on releasing a Commerce Department study on the international auto trade pending the outcome of the talks. The study is widely assumed to be a rationale for instituting new tariffs.

In an official statement, the three negotiators pledged continued cooperation on numerous issues, but they did not announce any new policy changes or give dates for future talks.

“The Ministers advanced discussions on their shared objective to address non market-oriented policies and practices of third countries that lead to severe overcapacity, create unfair competitive conditions for their workers and businesses, hinder the development and use of innovative technologies, and undermine the proper functioning of international trade, including where existing rules are not effective,” they said in a joint statement.

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