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European and American “mini-tariff” agreement approved by the European Council

by YCPress

Brussels, November 18 The “mini tariff” agreement reached between the EU and the United States in August this year was approved by the European Council on the 18th. If it is subsequently approved by the European Parliament, the agreement will only take effect. Time issue.

The European Council issued an announcement on the same day to inform this decision. The “mini-tariff” agreement is the first tariff reduction and exemption agreement reached by Europe and the United States in more than 20 years. Once it takes effect, the EU will abolish the tariffs on lobster exported from the United States and the United States will halve the tariffs on processed food, crystal glass, lighters and other products exported to the United States.

According to the agreement, the time for tariff reduction and exemption between the two parties will be calculated from August 1 this year and will be valid for 5 years. The annual US trade volume involved is about 110 million U.S. dollars and the European trade volume involved is about 160 million U.S. dollars each year.

The EU Council announcement quoted German Federal Minister of Economy and Energy Altmeier (Germany is now the rotating presidency of the Council of the European Union) as saying that during the critical period of coronavirus pandemic, the “mini tariff” agreement is expected to benefit both parties and reduce mutual imports Cost; He also pointed out that the total trade in goods and services in Europe and the United States exceeds 1.3 trillion euros per year. Now the two sides should deepen cooperation to resolve trade disputes that have been delayed for many years.

In recent years, trade relations between the United States and Europe have continued to be tense, especially in the dispute over aviation subsidies between Boeing and Airbus. In October last year, the United States imposed additional tariffs on US$7.5 billion worth of EU exports to the United States in October last year, and the European Union began to impose additional tariffs on US$4 billion worth of US exports to the EU on the 10th of this month.

Affected by these disputes, as early as August this year, the two sides announced the agreement of “mini tariffs”. Some market participants pointed out that compared with the huge tariffs imposed by Europe and the United States, the tariff reductions and exemptions of the “mini tariffs” agreement are actually “mini”. Although it can make up for some losses of related exporters, it is expected to have limited effect in easing trade relations between Europe and the United States.