Paris (France) (AFP) – G7 trade ministers are set to meet in Paris on Tuesday and Wednesday to discuss issues such as critical minerals and small packages but will not directly address the latest US threat to impose additional tariffs on European vehicles. The second meeting of trade ministers under the French G7 presidency is taking place as the global economy has been upended by the closure of the Strait of Hormuz, through which a fifth of the world’s oil normally flows. Discussion of the repercussions of the Middle East war is expected to dominate an informal session on Tuesday, according to the office of France’s junior trade minister Nicolas Forissier.
Meanwhile, President Donald Trump’s threat last Friday that he will hike US tariffs on cars and trucks from the European Union will likely be addressed separately. US Trade Representative Jamieson Greer is expected to meet with EU Trade Commission Maros Sefcovic in the French capital. They also have a meeting scheduled with Forissier and French Economy Minister Roland Lescure. The US and EU struck a deal last summer to cap US tariffs on EU autos and parts at 15 percent, which is lower than the 25-percent duty that Trump imposed on many other trading partners. In late March, EU lawmakers gave their green light to the bloc’s tariff deal with Trump, but with conditions. It must still be approved by member countries.
“Our position for the moment is not to overreact,” said Forissier’s office. “We will discuss it among Europeans when the time comes, but in any case not within the framework of the G7,” it added. “This agreement is useful and we must continue to implement it.”
On Wednesday, the trade ministers of the G7 nations (Britain, Canada, France, Germany, Italy, Japan, and the United States) are expected to discuss the four priorities set by the group’s French presidency. The first is to find a collective and effective response to industrial overcapacity that undermines free trade. Even if the discussion doesn’t formally target China, the country’s subsidising of certain sectors has created trade tensions for years.
A second priority is economic security, in particular securing and diversifying supplies of critical minerals that are indispensable in producing strategic products such as computer chips, electric vehicle batteries, and super magnets. France favours creating a system of groups of producing, processing, and consuming nations that share a commitment to implementing good practices.
The ministers will also touch on the failure in March of the latest round of World Trade Organization negotiations, with the body’s role as a trade referee having been paralyzed by the United States for years. “The goal is for this organization to be better suited to current challenges,” Forissier’s office said.
Additionally, the ministers will discuss cross-border sales via e-commerce sites which have generated huge volumes of small parcels that escaped customs duties and posed unfair competition to local retailers. The US last year suspended the tariff exemption on small parcels valued at less than $800, and the EU will this summer put in place a flat-rate customs duty on packages valued at under 150 euros.
The summit of G7 heads of state and government is scheduled for June 15 to 17 in the eastern town of Evian along the shore of Lake Geneva.
© 2024 AFP
