European Union and United States Agree to Lower Tariffs
The European Union and the United States have released a joint statement in which they announce a lowering of tariffs for specific goods. These positive measures have been taken to enable easier market access to both markets.
Tariffs Finally Going Down
The agreement comes as a positive outcome of events after the negative trading atmosphere between the two parties. The United States was allowed to raise tariffs after the World Trade Organization ruled that the subsidies that Airbus received from the European Union were an illegal form of state aid. The European Union and the United States have been in a 16-year trade battle over the state aid for Airbus and its American competitor Boeing. As a penalty, the World Trade Organization allowed the United States to raise tariffs on European products worth 7.5 billion euros.
The agreement came after the United States announced earlier this month that it would hold off on the 7.5 billion in tariffs. While it is a step in the right direction, there will not be any additional agreement soon. President Trump has started his campaign to get re-elected, and signing an agreement now will make him look weak to his supporters. Further steps toward a new Trade Agreement between the European Union and the United States are expected to be taken after the election. Whether Donald Trump or Joe Biden will be on the other side of the table will be known after November 3 2020, which is the official election date for the US Presidency.
The European Union has decided to lower tariffs on fresh and frozen lobster products. The new tariffs will be valid for 5 years, and the European Union has agreed to start the necessary procedures to make these tariffs permanent. These lower tariffs represent about 95 million euros in value.
The United States will halve tariffs on a range of products, including certain prepared meals, certain crystal glassware, surface preparations, propellant powders, cigarette lighters and lighter parts. Both sides will make the reductions on a Most Favored Nation basis and are retroactive to begin August 1st 2020.
You can find the original joint statement here.