The US and European Union have completed details of a new trade agreement aimed at reducing tariffs and enhancing trade relations. The agreement was announced in a joint statement on Thursday.
Terms for Reducing Automobile Tariffs
Under the agreement, the US will maintain its tariffs on European automobiles unchanged until the EU introduces legislation lowering barriers to American products. Once this happens, tariffs on car imports from the EU will be reduced from 27.5% to 15%.
The discounted rates will be applied in the same month the EU legislative proposal is advanced.
Access to Agricultural Products and Seafood
The EU has committed to eliminating tariffs on all US industrial goods and granting preferential access for several agricultural exports, including tree nuts, dairy products, and seafood.
Special attention will be given to seafood products, particularly US lobster, which will see an extension of the tariff regime.
Corporate Sustainability Commitments
The agreement also addresses US criticism of European corporate sustainability rules. The EU has committed to ensuring that its directives do not restrict trade with American companies.
Brussels will also revisit its requirements for civil liability registration for smaller companies.
The signed agreement between the US and EU represents a step towards deepening trade relations and alleviating tensions between the two economic powers. It includes commitments to reduce tariffs and facilitate market access.
