US Commerce Secretary Howard Lutnick has a clear but controversial call for the EU: the Union's digital rules must be relaxed.
In return, the US is willing to relax tariffs on steel, and at the same time, American investments in data centers in Europe, among other things, will increase significantly. That was the announcement after a meeting between US and EU trade ministers in Brussels on Monday.
- Balanced digital rules will generate so much investment. If the EU gets it right, the scale of investment will be fantastic, says Howard Lutnick, with a style of speech reminiscent of US President Donald Trump.
However, the EU sees the digital rules as an important protection for citizens in the EU and an attempt to create a global standard for large tech companies. Thus, the EU and the US did not achieve a breakthrough at Monday's meeting, even though Foreign Minister Lars Løkke Rasmussen (M) described the meeting as "constructive".
- It is very useful that we had the opportunity to discuss the situation in Brussels between all the trade ministers. It was a frank and constructive discussion, says Lars Løkke Rasmussen after the meeting.
Preparing for barter
However, the US remains critical of the EU's attempt to become a global superpower when it comes to rules for tech companies.
US Trade Representative Jamieson Greer believes that the EU's Digital Markets Act is almost exclusively targeted at large American tech companies, which, according to Greer, are being "aggressively" pursued with fines by the EU.
The Trump administration is not demanding that the EU completely drop the digital legislation, but Howard Lutnick made it clear after Monday's meeting that the US wants more leeway for tech companies:
- If the EU balanced the digital rules better, it could lead to investments in the EU of 1000 billion. This would correspond to a boost of 1.5 percent of the EU's total economy. The EU does not need to drop the rules, but create more balanced rules. If they can do that, we can help with tariffs on steel, says Howard Lutnick.
He is thus setting up a barter trade that may be difficult for the EU to reach an agreement on. There is widespread reluctance, especially in the EU Parliament, to relax digital regulations.
Donald Trump has created great European frustration with his tariffs - yet Lutnick used his visit to Brussels to advocate for increased cooperation between the EU and the US.
- If we come together, we can create the strongest trading bloc in the world, says Lutnick.
The Danish Foreign Minister also hopes for a way forward for transatlantic trade.
- When we join forces, we are strong. We are the largest trading bloc in the world. And when we unite our strength, we can set standards for the whole world, says Lars Løkke Rasmussen.
/ritzau/
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