Europe

The draft Brexit deal unveiled by the UK government this week could stop a future U.S.-United Kingdom free trade deal before meaningful talks have even begun, two British Conservative members of Parliament, along with a British trade analyst, argued on Thursday.

The deadline for public comments is Jan. 15 and the hearing will be Jan. 29.

“The difference is minimal, I would say. And EU wine exporters face important non-tariff barriers here as well.”

As Trump administration trade officials gathered at the White House to discuss a draft Section 232 report on the imports of autos and auto parts, EU Trade Commissioner Cecilia Malmström said on Tuesday that she expected the European Union to remain outside the scope of any potential tariffs stemming from the investigation.

European leaders could approve it later this month, after which the European Parliament would have to ratify it, but British Prime Minister Theresa May is likely to face opposition in the UK.

European trade ministers are hoping to give the European Commission a mandate to negotiate a trade deal with the United States by early 2019, EU officials said last week.

European officials this week stressed that proposals for taxes on digital services, which U.S. companies and trade groups have labeled as potential trade barriers and violations of World Trade Organization rules, would include a sunset clause that would terminate the taxes if a multilateral solution was reached.

“Strong digital trade outcomes in the EU, Japan, and UK negotiations will help counter growing restrictions on U.S. trade and set examples for other countries developing their own rules.”