“Better than nothing: the US and EU approved a trade agreement, but there are enough dissatisfied people on both continentsThe EU and the US have approved a framework trade agreement. A 15% tax will apply to almost all European goods going to the US, while Europe will abolish import tariffs on American products and purchase chips, energy carriers, and military equipment.
”, — write: unn.ua
DetailsThe European Union and the USA have approved a framework agreement on mutual, fair, and balanced trade. Now, almost all European goods imported into the USA will be subject to a 15% tax. Until now, the current rate was 1.5 percent, but recently Trump even promised 30% tariffs.
European goods will become more expensive for US citizens, and their choice will become smaller. But Washington hopes that this measure will encourage people to choose American goods first.
European companies will sell fewer goods overseas. In this regard, the Committee on International Trade in the European Parliament acknowledges:
This is bad for the EU economy
It has now been agreed which products will not be subject to the 15% tariff, although it is not yet entirely clear by how much it will be reduced.
The European Commission hopes that the reduction will be to zero. The US and EU promise to work on expanding the list of products to which the 15% will not apply. But these are plans for the future.
Among such goods:
- aircraft and their parts;
- generic drugs;
- certain natural resources that are not available in the US at all.
Other tariffs may be higher, particularly steel and aluminum – at 50%.
At the same time, Europe promises to abolish import tariffs on American products.
It has already been listed for what:
- seafood;
- nuts;
- dairy products;
- fruits and vegetables;
- processed foods and pork.
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It will be cheaper for European food producers to include these American products, and consequently, for European producers, this means the emergence of an additional competitor.
Europe also promises to purchase from the US:
The European Union and the United States also promise to eliminate “non-tariff barriers” when it comes to food trade. Pork and dairy products are specifically mentioned.
US authorities and EU representatives also agreed to automatically allow vehicles from each bloc to enter their roads.
The car agreement is particularly beneficial for American manufacturers.
“Europe risks being flooded with excessively large and insufficiently regulated American pickups and SUVs, which completely contradict the European concept of safer mobility,” says ETSC director, European Road Safety Institute, Antonio Avenoso.
Who wins or loses from this agreement?
Many companies and politicians in Europe say this is better than no deal. And in both the US and Europe, there are manufacturers who will benefit to some extent.
Experts emphasize that a trade war with extremely high tariffs and political escalation helps no one.
But there are those who are less satisfied.
Among them are European wine and spirits producers, who hoped for an almost zero tariff. Also the pharmaceutical sector.
In the US, the cattle sector reacted with disappointment.
RecallThe European Union and the US are close to a trade agreement that provides for a 15% tariff on EU goods imported into the United States. This rate may apply to cars, reflecting the US framework agreement with Japan.
The United States of America will apply 15% tariffs on imports of European wine and spirits from August 1.