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After several weeks of negotiations, the EU and the United States reached an agreement on Sunday in the tariff dispute that shares them in mid -March: the EU will fulfill 15% of the duties in its export in the United States, said the President of the European Commission Ursula von der Lein.
“We stabilized one 15% duties for the vast majority of EU exports. This coefficient is applied to most sectors, including cars, semiconductors and medicinal products, ”she said, adding that“ these 15% are not thorough. Severe clarity for our citizens and enterprises. ”
Cars that were required up to 27.5% for several months now encounter 15%. A moderate victory for German manufacturers.
Von Der Laien also announced that zero duties will be valid for certain chemicals, certain generics, equipment for the production of semiconductors, certain agricultural products (but, with the exception of all sensitive products, such as beef, rice, ethanol or sugar).
Nevertheless, there are uncertainty from the point of view of parts and areas covered by a 15%rate, the legal security of the agreement has reached the EU and investment on Sunday.
1. There is still no legal obligatory agreement
The agreement reached will not be legally binding on both parties for some time. It is precisely when it remains uncertain. It is expected that a joint statement will be published by August 1, the deadline established by US President Donald Trump when he threatened to bring a 30% duty in the EU.
“This will be a relatively easy joint statement,” the EU official said, adding that the EU also expects the issuance of the US executive resolution, which will be sure that it has been agreed. Until then, 15% negotiations will continue.
“Since we want the United States to quickly realize its units, we will also want to quickly realize our units,” the official said, adding: “At present, we are considering an accurate legal framework with the Council and the European Parliament.” The bilateral international agreement between the EU and the United States will take time, so the commission may consider other funds.
2. What EU products are excluded?
The aircraft will be excluded from 15%of duties, which means that they will be sent to the United States without duties. Production lines in these areas are too interconnected to risk the United States to make its plane more expensive.
Nevertheless, the EU will continue to negotiate other exceptions, and wine and alcoholic drinks on its agenda. From the very beginning of the negotiations, the EU industries constantly warned about the consequences of the agreement that would punish them.
“We really believe that wine trade is very useful for both companies and American American companies and should be included in the regulation of tariffs from 0 to 0,” said Marcius Bargagaglion, president of Comean Europeen des Enterprises de Vin, on Sunday, adding: “This is not only the EU. We were also strong supporters of the protection of this vital exchange. ”
3. Steel and aluminum: System
Currently, the United States attach 50% of the duties on steel and aluminum. This will remain until both sides agree in the quota system. Nevertheless, the commission remains defined in its levers in the upcoming negotiations. “I think there are financial and business interests in the game,” the EU official said, adding that providing special steel from the block is that “urgently requires American processing.”
However, European steel plants appeared on Monday. “If our traditional export in the United States confirms a zero duty, we would go in the right direction,” said Axel Egert, the General Director of the European Union Steel (Eurofer), but added: “There is no clarity. As always, the devil is hiding in details. ”
Uncertainty is compensated by the EU and the US obligation together to deal with global excess production capabilities, mainly from China.
4. Energy: freezing the EU market will depend on its industry
Over the next three years, the EU promised to buy Energy Energy in the amount of $ 750 billion. That is, 250 billion dollars a year is sent to the industry of liquefied natural gas, oil and nuclear energy of the United States. “We also studied our needs from the point of view of the gradual abolition of energy import from Russia,” the EU official said.
Nevertheless, the official admitted that there is no publicly committed to the implementation of this goal, since the EU and its institutions will not make the real market. “We can help with the concentration of demand and contribute to certain things, and we can consider where, perhaps, there are overload points in the infrastructure,” the official said.
The EU also promised to buy us a microchip from artificial intelligence in addition to $ 750 billion.
5. Investments in the EU in the United States will depend on business
According to the transaction, EU enterprises will invest $ 600 billion in the United States. But there are also no state bodies that will follow it, as in the case of an agreement on Japan-Ssha, reached on July 22, when investments are shares, loans and guarantees from state organizations.
Nevertheless, the commission guarantees that it had detailed contacts and discussions with various business -analysis and companies to find out what their investment intentions are.
“In fact, we have collected what we know about investment intentions of private companies. And how this will be expressed in a joint statement is that this intention, ”said another EU official, adding:“ Therefore, this is not that the EU as a state body can guarantee. ”