EU, US publish Joint Statement on transatlantic trade and investment
The European Commission (EC) announced on August 21 an EU-US Joint Statement “establishing a framework for fair, balanced and mutually beneficial transatlantic trade and investment”.
This Joint Statement confirms and builds on the political agreement reached by EC President Ursula von der Leyen and US President Donald Trump on July 27, the EC said.
“The Joint Statement sets out the commitment on both sides to work towards restoring stability and predictability in EU-US trade and investment, for the benefit of businesses and citizens,” the Commission said.
“It is the first step in a process which will increase trade and improve market access in additional sectors.”
The EC said that the Joint Statement follows intensive negotiations led by EU Trade Commissioner Maroš Šefčovič with his US counterparts, Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer.
The Joint Statement lays out in detail the new US tariff regime towards the EU, with a “clear maximum, all-inclusive”, tariff rate of 15 per cent for the vast majority of EU exports, including strategic sectors such as cars, pharmaceuticals, semiconductors and lumber.
Sectors which are already subject to Most Favoured Nation (MFN) tariffs of 15 per cent or above, will not be subject to additional tariffs.
With regard to cars and car parts, the 15 per cent US tariff ceiling will apply in tandem with the EU initiating the procedures for tariff reductions vis-à-vis US products.
In addition, effective as of September 1, a number of product groups will benefit from a special regime, with only MFN tariffs applying. These include unavailable natural resources (such as cork), all aircraft and aircraft parts, generic pharmaceuticals and their ingredients and chemical precursors.
Moreover, in line with Von der Leyen‘s July 27 statement, both sides agree to continue to ambitiously work to extend this regime to other product categories – a key deliverable for the EU, the EC said.
“Recognising shared challenges as well as the benefits of cooperation, the EU and US intend to work on ringfencing their economies from overcapacity in the steel and aluminium sectors, and to work on secure supply chains between each other, including through a tariff rate quota solution for EU exports of steel and aluminium, and their derivative products,” the EC said.
“While the European Union remains convinced that high tariffs are detrimental to the global economy, the negotiated outcome avoids harmful escalation and creates a basis for continued dialogue and the development of the transatlantic relationship, including in areas of shared strategic interest,” it said.
The transatlantic relationship is already the most valuable economic relationship in the world, worth 1.6 trillion euro annually. “The deal safeguards this relationship, and millions of EU job,” the EC said.
The media statement said that the Commission will rapidly proceed, with the support of EU member states and the European Parliament, and in line with the relevant internal procedures, to implementing the main aspects of the deal.
The EU will also engage in negotiating an agreement on “fair, balanced and mutually beneficial trade with the US”, in line with the agreed framework and the applicable procedures, the EC said.
Following the EU-US political agreement, the EU has also suspended, effective as of August 7, the EU rebalancing measures adopted on July 24, the media statement said.
(Photo: European External Action Service)
