Under the agreement, the United States will reduce its tariffs on certain PRODUCTS exported by the EU by 50%, with an average value of $160 million, with retroactive effect to 1 August. These products include some prepared meals, some crystal glass products, surface preparations, greenhouse gas powders, cigarette lighters and lighter parts. The United States maintains the threat of increased tariffs in the ue-Airbus fight The new US agreement, which would drop lobster duties for five years, still needs to be approved by EU governments and the European Parliament. The agreement is the first tariff reduction agreed by the two economic heavyweights in more than two decades. The agreement on a package of tariff reductions, which will increase market access for hundreds of millions of dollars of U.S. and European exports, has been in effect since August 1, 2020. These tariff reductions are the first tariff reductions negotiated by the United States and the EU in more than two decades. On 13 October, the World Trade Organisation gave the green light to the EU to impose tariffs on $3.99 billion in annual exports of US aircraft and other goods, another possible blow for an already stagnant US aviation industry. U.S. Trade Representative Robert Lighthizer said the EU had “no valid basis for retaliatory measures against U.S. products,” while calling for a solution to the dispute. In October 2018, the two trading partners announced their intention to work towards a free trade agreement, although it is not in the midst of persistent political and trade issues.
The areas of negotiation could be too difficult and the attempt to do so could amplify the differences, Ikenson said, especially since the European Commission has publicly expressed its concerns about the disputed negotiations. Wendy Cutler, vice president of the Asia Society Policy Institute and a former U.S. negotiator, said Friday that these mini-collective agreements appear to be aimed at “catching up with market access lost because of our trade wars and staying on the sidelines while others are doing preferential business.” Non-tariff barriers are due to different regulatory systems (including definitions of standards), but also to other non-tariff measures, such as. B those related to certain aspects of consumer safety or protection. If Biden rises to the White House, he would inherit four major obstacles to restoring trade relations with the EU: metal tariffs imposed by President Donald Trump two years ago, with the introduction of digital services taxes across Europe, which could represent millions of dollars in shortfalls for the United States.