EU to start trade talks with US

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European Union countries backed starting formal trade talks with the United States after months of delay due to French resistance.

The EU governments voted by a clear majority to approve the negotiating mandates proposed by the European Commission. France voted against and Belgium abstained. The Commission, which coordinates trade policy for the 28-member European Union, wants to start negotiations on two tracks. The first one aims to tariffs reductions regarding industrial goods, while the other is facilitating companies to show products meet EU or U.S. standards.

The European Union and the United States reached an agreement last July. U.S. President agreed to hold off imposing punitive tariffs on EU cars as the two sides sought to improve economic ties. That including removing tariffs on “non-auto industrial goods”.

The Commission has repeatedly said it will not discuss tariffs or barriers to trade in farm products. However, it is willing to discuss cars, setting it on a possible collision course with Washington. The Trump administration has a wide-ranging wish list, including comprehensive agricultural market access.

France, with very few U.S. car exports, had been seeking to push the issue beyond the European Parliament election in May, convinced that dealing with Trump is not a vote winner.

Forex – EU to start trade talks with US

Market volatility has eased to multi-year lows in recent weeks and moves were again muted at the start of the week, though optimism over U.S.-China trade negotiations and strong Chinese economic data seemed to be pushing investors into riskier currencies.

Progress in U.S.-China trade talks spurs world stock rally and steered investors away from save havens such as the Japanese yen.

The yen fell towards a 2019 low on Monday, as low as 112.09 per dollar in Asian trading,

The Swiss franc reached its weakest in nearly a month as a rally in global markets cut into demand for currencies considered safe havens. The Swiss franc also eased against the euro, to 1.1344 francs. It has dropped 1.5% from its 2019 high of 1.1164 francs in late March.

The Australian dollar, a barometer of investor sentiment, was unchanged on the day at $0.7173 but close to a 1-1/2 month high.

The dollar was modestly weaker against the euro on Monday. Investors focused on European manufacturing data due on Thursday for signs that growth in the region is improving. Investors are also focused on U.S.-China trade talks, with any deal between the two countries seen as likely to remove headwinds to global growth.

Sterling rose back towards $1.31 on Monday, although trading was quiet in the absence of any significant Brexit-related developments as the Conservative and opposition Labour parties continue their talks..

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, Investing, CNN money