YEAH, IT'S BEEN AWHILE SINCE WE
GOT EVEN 3% ON OUR CASH.
LOOKING AT THE SCREEN HERE, THE
DOW DOWN 522 POINTS, I WANT TO
POINT OUT THE VOLATILITY OR FEAR
INDEX IS SPIKING ABOUT 15%.
IT IS NOW ABOVE 20 TO THE
UPSIDE, RATHER, ABOVE 20, SO WE
ARE LOOKING AT THE MOMENT,
DECENT FEAR HERE BUT AS WE LOOK
AT THIS, WE ALSO HAVE TO TAKE
INTO ACCOUNT THE FACT THAT
PRESIDENT TRUMP IS ABOUT TO TURN
HIS FOCUS TO TRADE ONCE AGAIN.
NOW, HE HAD THIS WEEKEND VISIT
TO EUROPE TO COMMEMORATE
ARMISTICE DAY.
OF COURSE, THE END OF WORLD WAR
I.
IT HAD ITS MOMENTS OF TENSION
BETWEEN HIM AND SOME WORLD
LEADERS BUT NOW THE REAL STRAIN
MIGHT BEGIN BECAUSE THE EU AND
U.S. STILL HAVE NOT RESOLVED
THEIR TARIFF TIFF.
EU'S TRADE CHIEF AND U.S. TRADE
REPRESENTATIVE ROBERT LIGHTHIZER
WILL COME FACE-TO-FACE WITH
TALKS IN WASHINGTON ON
WEDNESDAY.
ACCORDING TO OFFICIALS, THERE IS
HOPE FOR WHAT'S CALLED EARLY
HARVEST.
AN EARLY HARVEST AGREEMENT IS A
WAY TO MOVE ALONG TRADE TALKS
AND STAVE OFF HIGHER U.S. CAR
DUTIES.
EARLY HARVEST IS A TRADE TERM,
IN CASE YOU DON'T KNOW IT, FOR
SOME SORT OF DEAL BEING BROUGHT
AT THE START OF NEGOTIATIONS IN
ORDER TO SMOOTH THE WAY FOR A
LARGER FRAMEWORK.
DAVID O'SULLIVAN IS THE EU
AMBASSADOR TO THE U.S. HERE IN A
FOX BUSINESS EXCLUSIVE FROM
D.C., ACTUALLY.
AMBASSADOR, LET'S GET RIGHT TO
IT.
REMEMBER THIS JULY, WHEN
PRESIDENT TRUMP AND THE EU
COMMISSION PRESIDENT BURST OUT
OF THE WHITE HOUSE AND PROMISED
THEY NEGOTIATE IN ORDER TO AVERT
U.S. AUTO TARIFFS?
THAT MOMENT WAS FOUR MONTHS AGO.
WHERE DO THE TWO SIDES REALLY
STAND TODAY?
>> I THINK WE HAD SOME VERY,
VERY GOOD DISCUSSIONS BOTH AT
WORKING LEVEL AND AT THE CHIEF
NEGOTIATOR LEVEL.
BOB LIGHTHIZER AND CECELIA
MALSTROM MET A FEW WEEKS AGO,
TWO WEEKS AGO, AND SHE WILL BE
HERE ON WEDNESDAY, AS YOU SAID,
TO CONTINUE THE TALKS WITH
AMBASSADOR LIGHTHIZER.
WE HAVE BEEN WORKING HARD ON THE
FOUR PILLARS OF THAT AGREEMENT
REACHED BETWEEN PRESIDENT TRUMP
AND PRESIDEN
AND THESIDEN
AND THERIDEN
AND THEREDEN
AND THERE WN
AND THERE WILL BE WORK ON
REGULATORY MATTERS AND EXPORTS
WHICH HAVE BEEN INCREASING
CONSIDERABLY AND JOINT WORK ON
HOW TO REFORM THE WTO.
SO THE TALKS ARE PROGRESSING
VERY WELL.
LIZ: I'M GETTING A BETTER
FEELING HEARING THIS FROM YOU,
BUT THEN YOU START TO HEAR ABOUT
THE CONCERN REGARDING THE AUTO
TARIFFS.
JEAN-CLAUDE WAS SAYING THE AUTO
TARIFFS AND REPRIEVE FROM THEM
THAT PRESIDENT TRUMP GRANTED THE
EUROPEAN UNION ACTUALLY EXPIRE,
THEY WILL BE DONE PRETTY MUCH BY
THE END OF THE YEAR, AND
THEREFORE, BEYOND THAT, IF THERE
ISN'T A DEAL, THE 25% TAX OR
TARIFF ON FOREIGN CARS, EUROPEAN
CARS COMING INTO THE U.S., WOULD
HAVE AN AVERAGE OF AROUND
$11,300 ADDED TO EACH EUROPEAN
MADE CAR COMING INTO THE U.S.
THAT IS GOING TO FREEZE UP THE
ENTIRE INDUSTRY, I WOULD
IMAGINE.
>> WELL, YOU'RE RUNNING A LITTLE
AHEAD OF THINGS THERE.
WE HAVEN'T EVEN SEEN THE REPORT
OF THE DEPARTMENT OF COMMERCE
WHICH IS THE NEXT STEP FOLLOWING
THE INVESTIGATION WHICH TOOK
PLACE, THEN OF COURSE THE
PRESIDENT WILL HAVE TO ASSESS
THAT AND SEE WHAT OPTIONS IT
PROPOSES AND WHAT HE WANTS TO
DO.
WE HAVE BEEN VERY CLEAR, WE
DON'T THINK THAT THERE IS A
JUSTIFICATION FOR USING THE
NATIONAL SECURITY EXCEPTION TO
THE WTO RULES IN THE CASE OF
AUTOS, AND ALSO, THE AGREEMENT
BETWEEN THE PRESIDENTS WAS VERY
CLEAR.
BOTH SIDES HAVE AGREED NOT TO
INTRODUCE ANY NEW TARIFF
RESTRICTIONS TO OUR TRADE AS
LONG AS THESE TALKS ARE
CONTINUING, AND WE BELIEVE THE
TALKS ARE GOING WELL AND
THEREFORE, WE WOULD BE VERY
SURPRISED IF THERE WAS ANY TALK
OF NEW ADDITIONAL TARIFFS AT
THIS POINT.
LIZ: OKAY.
I KNOW I PUSH FORWARD, BUT
LISTEN, AT THE END OF THE YEAR,
IT'S JUST AROUND THE CORNER --
>> THAT'S NOT REALLY A HEAD
LINER.
THERE'S NO DEADLINE AT THE END
OF THE YEAR.
WE WILL MOVE THESE TALKS AS
QUICKLY AS WE CAN, BUT WE ARE
TRYING TO MAKE AS MUCH PROGRESS
AS IS POSSIBLE.
IT'S A FAIRLY COMPLEX ISSUE BUT
WE ARE MOVING FORWARD.
LIZ: I WILL TELL YOU WHERE THERE
IS A MAJOR DEADLINE, MARCH 29th
FOR BREXIT, THE BIG DIVORCE PACT
BETWEEN THE UK AND EUROPEAN
UNION.
I JUST WANT YOUR THOUGHTS ON
THIS, BECAUSE THERE IS SOME NEWS
ON THIS.
THE TALKS HAVE GONE OVER I
BELIEVE 2:45 A.M. THIS MORNING
SO THERE IS DISCUSSION.
THE PIPELINE IS WORKING BOTH
WAYS, WHERE THEY ARE TALKING,
BUT BORIS JOHNSON, THE FORMER
MAYOR OF LONDON, HAD PUT OUT AN
OP-ED TODAY IN "THE TELEGRAPH"
NEWSPAPER AND THIS WAS A LITTLE
BIT OF STRONG LANGUAGE, WHAT A
SHOCK THAT HE'S HYPERBOLIC HERE,
BUT HE SAID THE UK HAS BECOME
THE PUNK OF BRUSSELS.
WE AGREED TO BECOME THE PUNK OF
BRUSSELS, SIGNING UP NOT JUST TO
THEIR EXISTING RULE BOOK BUT TO
HUGE CHUNKS OF FUTURE REGULATION
IN ORDER TO KEEP THAT BORDER
BETWEEN IRELAND, AN EU COUNTRY,
AND NORTHERN IRELAND, A UK
COUNTRY, KEEP THAT BORDER OPEN
AND SOFT SO THAT GOODS CAN
TRAVEL BACK AND FORTH.
OBVIOUSLY, A HARD BORDER WOULD
BE HORRIBLE.
IT WOULD TAKE TOO MUCH TIME TO
CLEAR GOODS IF SUDDENLY THAT
BECAME A CLOSED BORDER.
WHERE DO YOU THINK THAT STANDS?
>> WELL, TO BE CLEAR ON ONE
POINT, I THINK THE ISSUE OF A
HARD BORDER ON THE ISLAND OF
IRELAND IS NOT SO MUCH ABOUT
SLOWING DOWN GOODS.
IT'S ABOUT THE PEACE PROCESS.
IT'S ABOUT THE ENORMOUS
ACHIEVEMENT OF THE 1998 GOOD
FRIDAY AGREEMENT WHICH BROUGHT
PEACE AND TRANQUILITY TO
NORTHERN IRELAND AND TO ALL
PEOPLE INVOLVED, THE BRITISH AND
IRISH GOVERNMENT AND THE PEOPLE
OF NORTHERN IRELAND I THINK FEAR
THAT THE INTRODUCTION OF HARD
BORDER INFRASTRUCTURE WITH
POLICE POSTS AND CHECKS COULD
GIVE RISE TO DIFFICULTIES.
LIZ: IS THIS THINKING ABOUT WE
ARE NOW PUNKS FOR GIVING IN TOO
MUCH JUST TO HAVE AN OPEN BORDER
WITH IRELAND?
>> WELL, I DON'T KNOW IF MR.
JOHNSON KNOWS EXACTLY WHAT'S
BEEN AGREED OR WHAT'S UNDER
DISCUSSION.
THE ISSUE HERE IS WE HOPE TO
SOLVE THE ISSUE OF THE BORDER
BETWEEN NORTHERN IRELAND AND THE
REPUBLIC OF IRELAND IN THE
CONTEXT OF THE FUTURE TRADING
RELATIONS.
THAT'S SOMETHING WHICH CAN'T BE
DECIDED IMMEDIATELY AND AS YOU
SAY, THERE'S A HARD DEADLINE.
WE NEED TO AGREE ON A WITHDRAWAL
AGREEMENT BY THE END OF MARCH.
WHAT'S UNDER DISCUSSION IS HOW
TO HAVE A KIND OF INSURANCE
POLICY TO MAKE SURE THAT UNDER
NO CIRCUMSTANCES THERE WILL BE A
RETURN TO A HARD BORDER.
BUT THAT INSURANCE POLICY MAY
NEVER BE NEEDED IF THE PROBLEM
CAN BE RESOLVED IN THE COMING
YEARS THROUGH THE NEGOTIATIONS
FOR A FUTURE TRADING
RELATIONSHIP.
AND THAT'S YET TO BE DEFINED AND
YET TO BE DECIDED.
I THINK WE'RE WORKING ON
COMPLETING THE WITHDRAWAL
AGREEMENT WHICH ARE THE TERMS OF
THE UK'S DEPARTURE AND A
POLITICAL DECLARATION OF HOW WE
WILL TAKE FORWARD THE
NEGOTIATIONS ON THE UK'S FUTURE
RELATIONSHIP WITH THE EUROPEAN
UNION AFTER THEY LEAVE AT THE
END OF MARCH.
LIZ: LET'S END WITH THE U.S. AND
THE EU.
GIVE ME YOUR OVER/UNDER ON
WHETHER WE WILL SEE A GOOD DEAL,
A GOOD FAIR DEAL FOR BOTH SIDES,
AND AGAIN, JEAN-CLAUDE AND
PRESIDENT TRUMP ARE EXPECTED TO
SEE EACH OTHER AT THE G-20.
>> I THINK WHEN THE TWO MEN MET
HERE IN WASHINGTON AT THE END OF
JULY THEY STRUCK UP A GOOD
PERSONAL RAPPORT.
THEY HAVE AGREED AN AGENDA
WHICH, IF WE CAN COMPLETE IT,
WILL DELIVER GOOD OUTCOMES FOR
BOTH SIDES, AND I'M QUITE
CONVINCED THAT WE WILL BE ABLE
TO DELIVER ON THAT AGENDA TO THE
BENEFIT OF BOTH THE UNITED
STATES AND THE EUROPEAN UNION.
LIZ: SGO
LIZ: SOO