Balancing economic security and openness
News
22 Oct 2024
Customs and trade facilitation , Trade
Balancing economic security and openness

On Tuesday, 15 October, we heard how we can balance economic security and resilience with open trade. Our panel dove into the role that EU-US trade and investment ties play in supporting Europe’s competitiveness. We also heard about the importance of prioritising trade relationships with like-minded partners. After the panel, Maria Martin-Prat De Abreu, Deputy Director-General, Directorate-General for Trade, European Commission joined us to speak about EU trade policy is developing to meet current challenges. 

The panel included Rufino Hurtado, Senior Trade Representative, US Mission to the European Union and Malorie Schaus, Research Fellow, Global Governance, Regulation, Innovation and Digital Economy Unit, Centre for European Policy Studies. The discussion was moderated by Emanuele Frezza (UPS), Chair, Trade & External Affairs Committee. 

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On Wednesday, 11 March, the United States Trade Representative launched Section 301 investigations into structural production overcapacity against a range of economies, including the European Union.  We understand that this decision is part of a larger attempt to stabilise the US tariff system in the wake of the Supreme Court ruling striking down the International Emergency Economic Powers Act (IEEPA) tariffs. 

The American Chamber of Commerce to the European Union (AmCham EU) is concerned about the continued uncertainty of the current trade environment. Companies still lack clarity over future tariff rates in both the short- and long-term. We continue to oppose broad-based tariffs as they raise costs for businesses and consumers and disrupt supply chains. 

With potential measures against the EU under consideration, AmCham EU calls on the EU and the US to avoid escalation in the trade dispute. The priority must be to restore stability and predictability in transatlantic trade. The deal struck in the summer is not a perfect solution, but it offers the most realistic path forward given political priorities on both sides. We look to the parties to honour their commitments under the EU-US Framework Agreement. 

The US Administration rightfully identifies overcapacity as a critical issue in the global economy which also affects the European market. We see the EU as part of the solution, rather than the problem. The EU and the US must work together to tackle the real issue at hand: unfair trading practices from non-market economies.  

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Business backs provisional application of the EU–Mercosur Partnership Agreement

Business associations have expressed full support for the European Commission’s decision to provisionally apply the EU–Mercosur Interim Trade Agreement. The move marks a decisive step towards implementation after more than 25 years of negotiations. The economic case is compelling. The European Commission estimates indicate that, once fully implemented, the Agreement could increase EU exports to Mercosur by nearly 40%, generating €48.7 billion in additional annual exports and €77.6 billion in annual EU GDP gains by 2040. At the same time, prolonged delays have carried significant costs for European competitiveness. Swift operationalisation of the Agreement will enhance market access, diversify trade relationships and reinforce the EU’s leadership in sustainable, rules-based trade.

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Increasing certainty around the €150 customs duty de minimis threshold

The Commission’s proposed transitional rules to anticipate the removal of the €150 customs duty threshold risk creating distortions and unnecessary complexity. As discussed at the Trade Contact Group in January 2026, the current approach could undermine simplification efforts and lead to an uneven playing field between businesses involved in low-value distance sales. 

Co-legislators should consider targeted changes to address these risks. In particular, the temporary €3 duty and the use of the H7 simplified customs declarations should apply consistently to all distance sales below €150. H7 data requirements for simplified procedures should also remain proportionate and not exceed those of the standard H1 dataset. Finally, changes to the definition of the customs declarant should be avoided where they may create legal uncertainty or increase fraud and liability risks.

Find out more about why a proportionate and legally sound approach is essential for a workable de minimis transition. 

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