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Image header Agence Europe
Europe Daily Bulletin No. 12109
Contents Publication in full By article 11 / 30
EXTERNAL ACTION / Usa

Ambassador Gordon Sondland says trade deal between EU and USA has ultimate goal of weighing against China

On Wednesday 3 October, the new US ambassador to the EU, Gordon Sondland, said he thought the "real benefit of concluding a trade deal with the EU" was giving more weight to the EU and US in the face of China.

"Part of the benefit (of a deal) is shifting the trade deficit into either neutral or even a surplus, but that’s not the big benefit.  The jackpot in the conclusion is now having what is about $40 trillion dollars combined GDP, working as a bloc in terms of dealing with Chinese growth (…) malign activities (...) and all the other things we're calling out to China to stop doing", he said in a interview with EUROPE, Euractiv and the EUobserver.  In Sondland's view, therefore, the sooner the deal is concluded, "the sooner we can both turn to real opportunity, which is to deal with China and make China act like a good global citizen in the business world".

And the ambassador said that such an agreement is within arm's reach.  He hoped that  "significant progress" would be achieved by the end of the year and that a deal could be concluded before the end of the Juncker Commission.  Despite his optimism, Sondland did not hide the fact there are differences.  He attended the discussions in Washington at the end of July between US President Trump and European Commission President Jean-Claude Juncker and said that under the agreement obtained, "all issues relating to trade will be on the table and open for discussion", especially "agriculture, entry to the European defence market, cars, everything" – "which is a point of difference between the EU interpretation and ours", he acknowledged.

According to Sondland, Trump clearly told Juncker that he "would love to not have to negotiate all of these issues point by point" and "would be willing to do a wide open deal with the EU.  No tariffs, no barriers, no subsidies, wide open – but that means no cherry picking either."  "I think that President Juncker appreciated the gesture but I don’t think the political will is there yet on the side of the EU to do a deal like that", Sondland said, adding that neither Brussels nor Washington wanted a new TTIP. 

When asked about the UK leaving the EU, Sondland said he would like the EU, and also London, to be strong partners, and for them to be able to conclude independent trade deals with the US.  "We would like each side to have the maximum flexibility in their dealings with us", he said.

Daily cooperation

But relations between the EU and USA are broader than just trade.  And while Sondland recognised that these relations are "in a complicated phase" with differences on Iran, trade and spending on defence, which "require point by point negotiations", Sondland wanted to highlight the daily work between the two parties.

When asked by EUROPE about the nature of the 'marriage of love or of convenience' relationship, the ambassador described the transatlantic tie as a "long term faithful marriage that has occasional ups and downs".  "So many things are going on with the EU which are positive, aside from Iran and trade issues", he said, mentioning cooperation on Venezuela, military mobility, the former Yugoslav Republic of Macedonia, border management, Ukraine and Georgia.

But the relationship seems above all to be of reason.  "If the US were not working with the EU on this huge list of things, either the EU will have to do it on its own, which would require significant additional financial commitment, or someone else will have to come and help.  And who could that someone else be?  China, Russia, I don’t think so", he said.  While the Europeans seem to be seeking new interlocutors across the globe, Sondland did not seem to be concerned.  "The EU has different priorities and times than the US.  Interlocutors with whom it is choosing to engage are responding to these priorities that are not necessarily ours, but that does not means that our relationship is in jeopardy", he said.

Cooperating with the US on European defence

Speaking about the relationship in terms of defence, Sondland said he thought the US had "the moral authority", as the biggest contributor to NATO, to tell the Allies to respect their financial commitment.  "If we are sharing the burden for the defence of a continent far away, with whom we have a long and treasured relationship that we never leave behind, at least do your fair share", he said.

When asked about the EU's efforts on defence, Sondland argued in favour of greater cooperation with Washington.  "We have no problem with the EU spending its own money on its own defence.  In fact we welcome it – the greater defence expenditure, the better.  One dollar spent by the EU is hopefully a dollar less that the US has to spend ultimately", he said.  He then added: "what we have a problem with is when a dollar is not spent in a way that is harmonious with the EU expenditure and either duplicative or not spent wisely in order to achieve the mission which primarily NATO is responsible for – coupled with the fact that the US is sending their dollars to defend Europe and would like at least a seat at the table and to help advise or comment on how the additional European funds are spent", he said, mentioning, for example, the ongoing work on military mobility in Europe.

Working together despite the Iranian issue

In addition, with regard to Iran, Sondland said he "understood and respected" the position of High Representative of the EU for Foreign Affairs and Security Policy Federica Mogherini on the Iranian nuclear deal.  In his view, the US will try to bring it to work with them to reengage in a new dialogue with Tehran and to resolve certain issues identified by the US, which are not addressed in the nuclear deal.   Sondland also thought that the measures taken by the Europeans would not prevent European companies from leaving Iran to avoid the US sanctions.  (Original version in French by Camille-Cerise Gessant)

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EUROPEAN PARLIAMENT PLENARY
EXTERNAL ACTION
SECTORAL POLICIES
INSTITUTIONAL
NEWS BRIEFS