Steel and aluminium agreements were discussed, as well as the situation in the Middle East and Ukraine. The summit between the European Union and the United States, held in Washington on Friday 20 October, saw Charles Michel and Ursula von der Leyen discuss outstanding trade agreements with Joe Biden, as well as the reaction of both parties to the clashes between Israel and Hamas.
Two years after the last transatlantic summit, the conclusions of this Friday’s summit are, in the final analysis, rather unambitious.
Setbacks in the negotiations for agreements on aluminium, steel and critical minerals
This was the main point of the summit: to succeed in putting an end to the two trade agreements that have been under discussion for many months between the United States and the European Union. In vain: despite an extraordinary meeting of the Member States’ ambassadors to the EU on the evening of Thursday 19 October, no common ground was found to finalise a text on the more sensitive of the two agreements, the Global Arrangement on Sustainable Steel and Aluminium (GSA) (see EUROPE 13227/8).
According to sources close to the matter, the question of the compatibility of the future agreement with WTO rules remains an immutable variable in the design of the text. The highly technical details are being discussed in parallel with the meetings of the EU27 ambassadors.
Recent proposals from the US to create a ‘club’ of like-minded economies that would impose tariffs on imports from economies deemed to be subsidising key sectors are also still under discussion in the EU.
One of the stumbling blocks is the difficulty for the EU to take a position on issues that are the prerogative of the Member States, according to another source, particularly with regard to working conditions.
As for the deadline of 31 October, according to a diplomatic source, this was not a technical reality. Negotiations are due to continue until the end of December. The same is true of the Critical Minerals Agreement, which is however more advanced. The latest draft agreement, presented by the Commission on 17 October, has not yet received general approval.
On both sides of the Atlantic, however, the mutual cooperation that has characterised EU-US relations since the election of Joe Biden is welcomed. “I look forward to discussing how we can continue to realise the full potential of our partnership, in particular by working together to promote the transition to clean energy”, said the US President after the summit.
Technological and technical cooperation
Despite these setbacks, the EU and the United States are united in pushing forward the green transition, declaring that they are “deepening our collaboration to address the urgent and interdependent crises of climate change, biodiversity loss and pollution, and urge ambitious action by all other major players”.
The establishment and progress of the EU-US Trade and Technology Council (TTC) is also cited as an example of the degree of cooperation towards which the two blocs should strive.
Valdis Dombrovskis, the European Commissioner for Trade, who was also in Washington, stated that “the transatlantic link is characterised by the greatest cooperation in trade and investment in the world. We are committed to finding new ways of working together and achieving tangible results at the next US-EU Trade and Technology Council (TTC) in December”.
While some EU citizens still have to apply for a visa to travel across the Atlantic, both sides have pledged that they will work to establish visa-free travel between all EU Member States and the US and to strengthen transatlantic academic exchanges.
China, always a sensitive subject
Part of the joint statement is devoted to China and the type of partnership that the United States and the EU wish to build, particularly in terms of economic, trade and industrial security.
In line with the economic security strategy announced by the EU, it is noted that “with a view to enabling sustainable economic relations with China, we will push for a level playing field for our firms and workers [...] At the same time, we recognize that economic resilience requires de-risking and diversifying [...] including in our own supply chains. We will foster resilience to economic coercion (and) we will address challenges posed by non-market policies and practices”.
Unity on the Middle East and Ukraine
The transatlantic partners decided to focus on consensual issues. The joint statement therefore begins with foreign policy issues, and in their public statements at the start of the meeting, the leaders emphasised these issues.
“The world is facing enormous challenges and, now more than ever, the world needs a strong alliance between the European Union and the United States to meet these challenges”, stressed Mr Michel.
In their statement, the two parties condemn “in the strongest possible terms Hamas and its brutal terrorist attacks across Israel”, adding that there is no justification for terrorism. They called for the immediate release of the hostages.
“We affirm Israel’s right to defend itself against these heinous attacks, in line with international law, including international humanitarian law”, stressed the Europeans and Americans, pointing out that they were working closely with their partners in the region to stress the importance of protecting civilians. “We are concerned by the deteriorating humanitarian crisis in Gaza”, the statement added.
For the transatlantic partners, it is also “crucial to prevent regional escalation”.
“We continue to work day and night to help the most vulnerable in Palestine to meet their urgent needs and to foster the conditions for relaunching the peace process on the basis of the two-State solution “, underlined the President of the European Council, reiterating that the EU would continue to work “tirelessly” to help put an end to the cycle of violence.
The two European presidents welcomed as well Mr Biden’s visit to Israel on Wednesday 18 October.
The statement also refers to support for Ukraine. “The United States and the European Union remain unwavering in our long-term political, financial, humanitarian, and military support to Ukraine”, it reads.
Both sides recognised the “urgency” of stepping up their efforts to ensure that aid meets Ukraine’s most pressing needs, adding that Russia must not be allowed to undermine the Ukrainian economy. They also highlight their ongoing work on the possible use of frozen Russian assets.
Europeans and Americans also promise to step up their joint work to undermine Russia’s ability to wage war and to maintain and develop its defence industrial base and capability.
“Putin will fail in the end. He is leading Russia to its ruin”, according to Ms von der Leyen, who promised that the EU would ensure that those responsible were held accountable for their actions.
The US and the EU also announced that they would strengthen and deepen their cooperation and commitment in security and defence. “This could include enhancing practical cooperation in operational theatres of mutual interest”, the statement said.
To see the Joint Statement: https://aeur.eu/f/96w (Original version in French by Camille-Cerise Gessant and Isalia Stieffatre)