Competitiveness Check—November 18 Edition
The Quick Take
At the midpoint of COP30 in Belém, Brazil, the EU is facing pressure to defend its Carbon Border Adjustment Mechanism against criticism from China, India, and other large trading partners who see the measure as protectionist. Watch GMF’s recent discussion of the legislation here.
The EU also faces political qualms at home, where the center-right European People’s Party recently aligned with far-right lawmakers to amend sustainability rules as part of the Omnibus 1 package.
US trade representative Jamieson Greer will meet EU trade chief Maroš Šefčovič on November 23 in Brussels. The meeting comes amid mounting US pressure to revise legislation Washington considers restrictive for US companies and accelerate the implementation of the July trade deal.
Meanwhile, the United States announced new trade agreements with Argentina, Ecuador, El Salvador, Guatemala, Switzerland, and Liechtenstein, and issued a joint statement with South Korea.
Top Five Transatlantic Trade-Related Developments
November 5: The US Supreme Court heard arguments on the legality of “reciprocal” tariffs imposed by US President Donald Trump under the International Emergency Economic Powers Act (IEEPA).
November 12: The European Commission opened an investigation into a potential Digital Markets Act (DMA) breach by Google in demoting media publishers' content in search results. Read GMF’s DMA/DSA explainer here.
The same day, EU ambassadors agreed to fast-track negotiations with the United Kingdom on electricity and trade. The United Kingdom has agreed to pay an "appropriate" financial contribution to the EU as part of the deals—a likely sticking point in the talks.
November 13: Warsaw hosted the 5th international Rebuild Ukraine exhibition and conference, spotlighting construction and energy projects. The event comes as Ukraine’s government faces a growing corruption scandal.
The same day, EU finance ministers agreed to accelerate the end of the de minimis exemption for low-value parcels from platforms such as Shein, Temu, and Alibaba. Customs duties will now apply starting in 2026—two years earlier than planned.
November 14: The United States reached a trade agreement with Switzerland and Liechtenstein, reducing the baseline tariff on Swiss imports from 39% to 15%. The higher rate had been in place since early August.
The same day, US President Donald Trump issued an executive order exempting over 200 agricultural products, including beef, coffee, tropical fruits, fruit juices, fertilizers, cocoa, coffee, bananas, tomatoes, and tea, from “reciprocal” tariffs.
November 17: China's Vice-Premier He Lifeng and German Finance Minister Lars Klingbeil agreed that their countries should strengthen commercial ties and ease trade tensions.
Figure of the Fortnight
$64.7 billion: The amount in US services exports to Switzerland in 2024. US services imports from Switzerland in 2024 were $35 billion. Switzerland was the fourth-largest market for US services in 2024, representing 5.6% of US services exports worldwide. Services exports from the United States to Switzerland supported around 217,000 US jobs in 2023.
Swiss companies in the United States rank first in terms of the average yearly salary they pay (over $130,000) and are the 6th largest foreign employer in manufacturing jobs in the United States.
Quote Unquote
"I think the support is quite sustainable, you know, we have been allies with European nations throughout the history of the United States. Our resources are vast, our desire to develop cooperation, both economic and national security is strong. Yes, the United States will be here for the long term.”
US Energy Secretary Chris Wright speaking to Euronews on November 7 during talks in Greece aimed at accelerating Europe's transition away from Russian gas by expanding regional pipeline networks and increasing US liquefied natural gas imports across Europe.
“Greece is blessed with a very unique geographic location, and we are the natural entry point for American liquefied natural gas into Europe. The vertical corridor is a project of great geopolitical and economic importance to us. We’re happy that it’s becoming a reality.”
Greek Prime Minister Kyriakos Mitsotakis at talks with US officials on November 7.