Europe

“The more the EU leadership plays the delay game the more we will have to use leverage to realign the relationship,” the U.S. ambassador said.

“A transatlantic trade dispute could easily spill over into national security issues, possibly damaging NATO and the broader transatlantic relationship.”

New conditions for trade talks with the United States could be added to negotiation mandates under consideration by European Union member states, including provisions on climate and the revocation of the EU Commission’s mandate for the Transatlantic Trade and Investment Partnership, according to EU sources.

The European Parliament on Thursday failed to pass a resolution outlining recommendations to the European Commission and EU member states on trade talks with the U.S. after a series of close votes on amendments that added language calling on member states to reject proposed mandates on industrial goods and conformity assessments.

British Prime Minister Theresa May’s negotiated Brexit deal is likely dead for good after a 149-vote loss in Parliament on Tuesday, setting up further votes in Parliament this week on whether the United Kingdom will proceed with a no-deal exit or if the UK will attempt to delay Brexit.

U.S. industry witnesses at a U.S. International Trade Commission hearing on a potential U.S.-UK trade deal on Wednesday grappled with how the United Kingdom's tariff schedule and regulatory regime, among other outstanding issues, will be shaped by Brexit.

The Office of the U.S. Trade Representative on Thursday released its summary of negotiating objectives for a potential deal with the United Kingdom, a list that largely mirrors those established for talks with the European Union.