União Europeia fecha acordo comercial com EUA; Putin reúne-se com Xi na China

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[00:00:02][music] [music] [music] >> Good morning. It is Wednesday the 20th of May. I'm Maeve McMahon and this is Europe today.

[00:00:20]>> [music] >> The place to go for all the news driving the day live here on Euronews. Coming up after a sleepless night in Strasbourg, MEPs have [music] reached a deal on the controversial EU-US trade arrangement signed last July with Donald Trump. In Scotland, [music] we'll speak exclusively to Bernd Lange, the lead MEP for the Parliament. Also in Strasbourg today, MEPs will hold crunch talks and finalize the controversial EU returns bill as national capitals call for long-term solutions for rejected asylum seekers. [music] After months of deliberation, it would allow EU capitals to strike deals with third countries and build deportation centers outside [music] the Union. Plus, just days after Donald Trump's high-profile trip, Russia's President Vladimir Putin arrived in Beijing late last night for talks [music] with his Chinese counterpart and quote long-standing friend Xi Jinping. The visit comes as the US [music] confirms plans to withdraw more troops from Europe insisting the move will not weaken NATO's deterrence capabilities.

[00:01:20]We'll be crossing live to the NATO headquarters. But first to our top story, negotiators from the three EU institutions, the Parliament, Council and Commission have sealed a deal in the early hours on the EU-US [music] trade pact struck last summer in Scotland.

[00:01:35]After watering down safeguard measures, relations with the US remain fragile as President Trump continues to use tariffs [music] as a tool to pressure allies. For more, I'm joined here in the studio by our Europe editor, Maria Tadeo. Good morning, Maria.

[00:01:48]>> Good morning. So, they got the deal over the line. What's in it? Well, they got it over the line. They agreed now to expedite the implementation of the arrangement that was agreed last summer between President Donald Trump and the head of the commissioner sort of under lying just to bring our viewers up to speed with this deal. The tariffs on US industrial goods will go down to zero tariffs on European imports heading to the US would triple. At this stage the really thrust of this issue is the European Parliament now gives the approval the consent to move on and go ahead with the implementation. They do this in a context in which the president of the US had threatened to double tariffs on European cars by July the 4th. That is of course America's Independence Day. If this did not happen would the European Parliament agrees now is that this will put the relationship on a more stable footing. That is questionable of course given the context between the US the Trump presidency and Brussels and they also say which is uh put together in this uh arrangement that we have now cut yesterday at about 2:30 in the morning is that they will go ahead expedite the implementation but they also argue that it comes with some safeguards. Of course we've had time now to look at the fine print. When I look at this what I would argue is that the safeguards have in fact been watered down uh to get this under the line.

[00:03:05]There are no mentions at some point this was floated the idea of territorial integrity in the European Union. A lot of this going back to the threats that President Trump made on Greenland and therefore also Denmark a member of the EU. That does not feature. They do have a clause that says uh the commission would have a right to suspend some of the parts of the agreement if we do not see uh tariffs and duties on steel and aluminum come down by the end of the year. Remember they're now standing at around 50%. There has been no tariff uh relief on that front when it comes to the Americans on the EU. And they also say this could be suspended all together by 2029. Of course by 2029 President Trump will not be in offer. When I look at this ultimately uh the Parliament agrees in a very difficult context to move ahead fearing that if not that would lead to escalation and more tariffs. By July, ultimately, will this change anything about the fundamental core of the arrangement? No, the 15% of European goods will stay, and of course, the US will still remain as a winner out of this with industrial goods coming down to zero and a promise by the Europeans to buy and spend billions on US weapons and energy. The deal, the core of it stays as it is. It is still dead in favor of the US. Okay, Marisa.

[00:04:17]Thank you so much for that. And shortly, you'll be speaking exclusively to Bernd Lange, one of the top negotiators on that deal, who was up all night. So, stay with us here in the studio for that. But now, moving on, Russia's Vladimir Putin is back in Beijing meeting Xi Jinping. But this visit feels very different from Donald Trump's just last week. So far, both leaders have hailed the important Russia-China ties, with Xi calling Putin a dear friend. Ari Hakobyanis has more.

[00:04:42]>> [music] >> It's been less than a week since Donald Trump's visit to Beijing, and now it's Vladimir Putin's turn to land in the Chinese capital for a state meeting with Xi Jinping. And to see past the official agenda, you just have to look at the guest list. When the US president visited, he brought tech and finance executives. Putin's massive delegation, however, includes five deputy prime ministers, eight ministers, regional governors, and the head of Russia's central bank. So, what does this power play actually signal for Europe?

[00:05:13]For Russia, China has become a critical economic lifeline, with bilateral trade topping 200 [music] billion dollars for three straight years. Moscow is structurally dependent on Beijing for industrial machinery, electronics, and cars. And with major Russian banks cut off from Western financial systems, [music] trade settlements in Chinese yuan have exploded from less than 2% in [music] 2022 to almost 30 to 40% of Russia's total trade.

[00:05:39]And for China, Beijing is buying record amounts of discounted Russian oil, so over 100 million tons a year. And at the same time, she's pushing for a massive new gas pipeline [music] called the power of Siberia 2.

[00:05:53]And the math is simple. The Chinese leader wants cheap Russian raw materials, but he cannot risk Western penalties blocking Chinese exports to valuable European markets.

[00:06:04]But hey, look at who else was on that plane. [music] Notably, Kirill Dmitriev, so head of Russia's Direct Investment Fund and Kremlin's key negotiator with Washington, hoping to leverage China's diplomatic ways to wind down the Russia's invasion of Ukraine.

[00:06:20]But for Beijing, it's all about the Taiwan card. And by showing Washington how close it can get to Moscow, China is pressuring Trump to limit US multi-billion dollar arm sales [music] to Taiwan. And you see, Putin and Xi have met more than 40 times [music] and openly call each other old friends. So if Europe is just waiting for these two to retire, there is bad news. Last year, Hot Mike caught them discussing [music] leaving until 150.

[00:06:47]So maybe that will be just enough time for Europe to finally decide on its stance. And if not, [music] maybe to learn Mandarin.

[00:06:57]>> [music] >> Now moving on, the Brexit debate is back on the agenda after Prime Minister Keir Starmer's leadership rivals suggested that the UK's place could be back here in the European Union. Your news correspondent Marit Gwyn spoke exclusively to the UK's state minister for trade from Strasbourg and started by asking him whether his government should ditch its red lines and try to rejoin the EU's single market.

[00:07:21]Well, the red lines were an agreement that we had between ourselves and the British public who elected us in the general election. You're right, it's it's not even 2 years yet since the last general election. We've got another 3 years before the next general election and I'm sure that the Labour government is going to be pushing forward on all these different elements. If we had more regulatory alignment between the UK and the European Union, just as we're about to do on food and agricultural products, but did that in other sectors as well. I think you would see a significant saving to business across the whole of the continent and a significant increase and in trade between the UK and the EU. And I think there is a really strong feeling that in a few years time it's perfectly possible that you will see British troops standing next to Danish troops and Spanish troops and German troops in Ukraine and defending our European security. It would be crazy if by that time we haven't managed to achieve a trading arrangement which allowed them to use the same car and buy the same products online and and and use services across the whole of the continent as well. Yet while you're pushing for this, your government is clearly on very fragile ground right now. There will clearly be eventually a an official leadership contest and one of the challenges of former health secretary Wes Streeting has already adopted a much bolder line on the on the post-Brexit relationship saying there needs to be a special relationship and even the possibility of rejoining the EU. Should that now be the Labour Party and the Labour government's line as well? Uh look, I've been a remainer from the beginning of time and I remain a remainer and I will remain a remainer until my dying day. So of course I would love to see the UK as a member of the European Union, but a vote was taken in 2016 and we had a general election in 2024 in which we made commitments to the um to the British public which I don't think we're we're about to surrender.

[00:09:15]The truth of the matter is we just need to get a common sense approach to so many different issues whether it's business travel, um it's British performing artists being able to tour around Europe or it's standing up to the security threat um and and our need for instance we will need to produce more steel, green steel in Europe including in the UK to be able to create the armaments that we're going to need for the future if we're going to really significantly invest, as we've all said we're going to, in our in defense and security.

[00:09:46]And now, if we're going to do that, we need to make sure that we have a good deal between the EU and the UK on steel, for instance. We need to make sure that British cars and electric vehicles can be sold in the European Union without additional burdens. All of these things, I think, to be honest, are just common sense. You also mentioned steel.

[00:10:05]The EU has recently halved its quotas and doubled its tariffs on foreign steel in response to the more hostile international landscape it's operating in. Are you afraid that the UK will be caught in that So, on steel, we we are having very productive conversations with steel. We ourselves are introducing new steel trade measures on the 1st of July, just as the European Union is. We need to make sure that we don't provide a problem for each other and because, frankly, the problem of that overcapacity in steel, which undermines sovereign steel capacity in on the continent of Europe, is not provided by us. It's provided by China and some other countries in the world that I'm very confident that we will come to a good arrangement on that. In relation to the the idea of a European preference made in Europe campaign, I'm very confident that people accept this idea that the the supply chains, in particular for cars and electric vehicles across Europe, include the the UK. And if we're going to make sure that the whole of the continent of Europe prospers, I think made in Europe will probably will have to include the UK as part of that agenda.

[00:11:14]>> [music] >> And moving on to NATO, where foreign ministers are preparing for a two-day summit in Sweden, where concerns over military hardware due to the US-Israel war in Iran are top of the agenda. Also on their place, how Europe can assist in the reopening of the Strait of Hormuz, if and when a resolution to the conflict emerges. For more, we can cross straight over to NATO to our news correspondent Shauna Murray. Good morning, Shauna. So, military chiefs are very worried about ammunition stocks. What are they saying to you? Mhm.

[00:11:46]Well, good morning, Maeve. Indeed, NATO foreign affairs ministers are meeting in Sweden for the next couple of days to discuss a number of seriously consequential issues that are facing the alliance, not least of which is this delivery of munitions because, as we've seen, the United States is burning through its stockpiles of very critical weapons, including Patriot air defense systems. That can have a knock-on effect for Europe and Ukraine and its access to these weapons. In addition, Maeve, we've also seen over the last few weeks an announcement by the US for troop cuts across European territory, European NATO territory, and there's due to be a further announcement of this on Friday.

[00:12:22]Now, I'm joined here at NATO headquarters by Colonel Martin O'Donnell, who's a senior adviser to the Supreme Allied Commander of Europe.

[00:12:30]Uh Martin, thanks very much for joining us this morning. So, first of all, this troop cut. Now, we saw an announcement of 5,000 from Germany. Instead of taking 5,000 troops from Germany, the US is taking 4,000 or canceling a brigade to Poland. But, there is going to be subsequent cuts. The Europe The Uni- The United States has already warned of this. But, you Can you tell us a little bit more about the context? Yeah, sure.

[00:12:51]So, I think you're talking about two separate things, uh but they share one thing in common. I'll talk about the two separate things, but on on the commonality, uh that is the United States has made it has made it abundantly clear that it needs to focus uh focus elsewhere, not just in Europe.

[00:13:07]Uh it has stressed Europe Europeans need to step up. Europeans are stepping up.

[00:13:12]There's agreement within the alliance that a stronger Europe equals a stronger NATO. So, that's the commonality uh that those two things uh share. Separately, if you look at each one, you talked about the the 5,000 with the 4,000. The 4,000 troops uh the rotational brigade earmarked for Poland, this has never been about uh this has never been about Poland. The other 1,000 troops obviously coming from coming from uh coming from Germany uh from a long-range fires unit unit there.

[00:13:41]And so those are rotational forces, rotational forces can rotate in and out.

[00:13:45]What's happening now uh is that the Supreme Allied Commander, General Cavoli, in both uh his capacity as Supreme Allied Commander and as European Commander is looking at how he needs to potentially adjust forces inside Europe to a to uh compensate for that, both US forces and NATO forces.

[00:14:02]Separately, uh yes, uh the US the uh the US uh uh there's been indications that the US will announce changes to NATO force model. I think the important thing uh for your viewers to understand is that uh those adjustments have been discussed about with NATO over the course of the last many months. All right, this is there should be no surprises on this, and it will focus on areas where we see Europeans very very capable of stepping up. So the idea being that the first announcement was I suppose in the middle of a feud with Chancellor Merkel, this announcement is in relation to uh ongoing discussions and military planning. So it's a little bit more sort of forward planning. And can I ask you also about uh access to munitions because we've seen the United States burning through billions of dollars worth of weapons. Now there's concerns that Europeans won't be able to access what they need for Ukraine. Yeah, so I I I think the United States has also made this clear that there's enough munitions. Munitions are still flowing both to Europe and most importantly to Ukraine. Cannot stress enough the importance of the Pearl, the prioritized Ukraine requirements list, and the contributions that we continue to need from nations to step up. We've seen many many contributions from many European nations. We need more to keep coming in to ensure these munitions can continue to go to Ukraine. But I suppose in terms of my production, that's the key issue, isn't it, because they can't keep up with the pace. So what needs to be done about production? Well, we need to increase our defense industrial base on on both sides of the Atlantic. And And that was a big part of the discussion that occurred here yesterday with the Chiefs of Defense meeting. I think that that will continue at the end of the week with the meeting of the foreign ministers. And just just in relation to the drones, can you just quickly tell us a little bit about because we've seen a lot more drone incursions across European territory. Just very quickly, is this something we need to be deeply concerned about?

[00:15:46]Yeah, so I I I I think what again the viewers need to need to understand is we saw NATO shot down a drone yesterday that that potentially threatened NATO airspace.

[00:15:57]We've done that before. We'll continue to do that. We're continuing to roll out ground-based interceptors for drones all along the the eastern front as part of Eastern Century. And so, viewers should be be assured that that NATO has a handle on this.

[00:16:10]>> Okay, Colonel Marleaux Jones, thank you very much for joining us this morning.

[00:16:12]I'll back to you in studio, Maeve. Thank you so much. But now, as promised, it is time to dive deeper into our top story today, and that is of course the deal last night in Strasbourg on the EU-US trade deal. Maria, today of course is here with us on set, so over to you.

[00:16:26]Yes, um Maeve, let's now go to Bernd Lange because he is a top negotiator for this file. Uh a deal has been agreed yesterday at night. Let's go straight to to our guest in Strasbourg. And uh sir, uh you've had no sleep, so thank you so much for joining us. I've got to admit I've defended you many times every time you've delayed uh the vote because this is a consequential decision for Europeans. Nonetheless, I'm surprised you've now agreed to it. What changed?

[00:16:55]First of all, it's not a deal. It's a legislation, [clears throat] and that's really important, and therefore we had to be really careful.

[00:17:03]And uh secondly, um we are not really delaying the process. The only delay we had was during the so-called Greenland exercise, where President Trump really used coercive measures against us. So, now we have safety net. So, we are looking for safeguard mechanisms for a monitoring system. We looking really to suspension clause and we have also a clear sunset for the whole legislation. So, this is a package which gives a predictability and safety for us, for our consumer, for our industry and therefore I'm quite happy that we concluded it. Uh but sir, do you honestly believe that? Do you think you're going to have a more stable relationship with President Trump because some would argue you've agreed to it cuz he's threatening you to double tariffs on the cars. That's really what changed, nothing else.

[00:17:57]Yeah, of course we have now security and that's so important. If and as you know this current legal base in the United States is Trade Act 122 is expiring on the 24th of July and nobody knows what will come after and we have now clear clear criteria that if our deal is not respected on the US side then we will lift again the tariffs. Or secondly, as you know the United States have really increased tariff for washing machine and other products after the deal of Scotland was concluded and we want to bring them back and also this has to be in our legislation. So, this gives us insurance that we can act in a proper way if there are turbulences on the other side of the Atlantic. Uh Mr. Lamy, some would say it's in fact the opposite. The safeguards have been watered down. Uh there is a clause here that argues a deal can be halted but only after 2029. President Trump will be gone by then. Do you really believe you have the safeguards in place so that this is a balanced deal?

[00:19:08]I will not make any comment on the deal of Scotland. Now, we have really a safety net. And yes, we have safeguards. We will have a monitoring of the economic consequences inside the European Union starting 3 months after this legislation is coming into force. And we have a lot of suspension clauses and we have also clear regulation that if the United States will not decrease the tariffs for this metal products until the end of the year, then we will lift our tariffs for this product. And yes, we have a sunset clause. And this is really called the new. This was not foreseen. We will have an impact assessment about the whole exercise and then we will start the negotiations after 3 years with the United States.

[00:19:58]So, there is a really big package for giving us predictability.

[00:20:02]>> Although, of course, the sunset clause only kicks in in 2029, 1 year after President Trump leaves office. But, I have to ask you about steel and aluminum because this is very important for the European industry. What makes you think the US will agree to lower them from 50% because we have seen no movement over a year. This is very painful for the European industry.

[00:20:22]That's not totally correct. So, we have some movement on the 2nd of April. So, I'm a motor cycle driver and motorcycles are relieved from this tariff. So, back to 15%.

[00:20:35]Um and some other products as well, but not all of them. So, we are in contact and we give them a time until the end of the year. And if then it's not happening, then we will come back to our tariffs. So, there is some room for maneuver on the US side and I hope that uh um the US administration will act properly. I just have to ask a final question. Now that you've agreed to expedite this, you say I hope the US will agree and comply, too. Do you trust President Trump ultimately? Do you honestly believe he will go through his words?

[00:21:13]Um, you will never know what is coming in his mind, but we have the possibility to act. So, if the conditions are not fulfilled, then we will we establish immediately the European tariffs for US products. And this is a clear message.

[00:21:30]Stick, President Trump, to the deal of Scotland, then of course we can act in a proper way. If you not, then we have our countermeasures ready. Uh, well, Mr. Lang and thank you so much. I know you had a very short night, so thank you. I appreciate it for joining us this morning. And thank you so much as well to you, Maria, as well. And Bernd Lange, of course, will be having a busy day. He'll be speaking to the press a little bit later this morning. For more news, of course, on that compromise, you can read yournews.com, but that does bring this edition of Europe Today to a close. Reach out to us at [email protected].

[00:22:01]That is our email address. But as always, thank you so much for tuning in.

[00:22:04]Take care of yourself and see you soon on yournews.

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