EU struggles to begin trade talks with US

European Union governments are struggling to reach consensus on a mandate to begin trade talks with the US, according to overnight reports.

In a meeting of EU ambassadors on Wednesday, France is expected to resist giving the European Commission permission to begin negotiations with the US to prevent tariffs, Bloomberg reported.

If France does not give its approval this could mean there is no mandate to negotiate and the EU could risk a delay, which could provoke a backlash from US president Donald Trump after the bloc already refused negotiations on agriculture.

France is concerned about the role of climate and the environment in the mandate after the US decided to withdraw from the Paris climate accord. A draft mandate for the ambassadors meeting, seen by Bloomberg, states that the bloc will only seek trade deals with countries signed up to the Paris agreement.

The clock is ticking for the EU since the truce between Trump and EC president Jean-Claude Juncker over American tariffs on European cars was only a temporary agreement.

A 25% levy on European cars would bring the vehicles price up €10,000 ($11,346) for imports to the US. The EU exported about €58bn worth of cars and auto parts to the US in 2017.

ANOTHER SPAT UNRESOLVED

Elsewhere, Juncker accused China of unfair trade practices, just as President Xi Jinping wrapped up a tour of Europe in which he sought to build closer economic ties.

Speaking to lawmakers, Junker said he told Xi that "it cannot remain that Chinese companies have free access to our markets in Europe, but we do not have access to the markets in China."

Junker added that "there are limits that are set for us (Europe), while here we set no limits for Chinese investors."

Junker said he spoke directly with Xi regarding the issue during a 26 March meeting in Paris, alongside German Chancellor Angela Merkel and French President Emmanuel Macron.