European Union Agrees First US Tariff Reductions in Two Decades

Boris Johnson catches crabs in Scotland
Credit: Andrew Parsons / No 10 Downing Street flickr

WHILST Boris Johnson catches crabs, a joint statement from the European Union and the US Government explains that the EU has caught a real deal to eliminate certain tariffs including those on US shellfish.

The statement issued by United States Trade Representative Robert Lighthizer and European Union Trade Commissioner Phil Hogan said that they had reached agreement on a package of tariff reductions that will increase market access for the EU by €135 million ($160 million).

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Under the agreement, the EU will eliminate tariffs on imports of US live and frozen lobster products. US exports of these products to the EU were over $111 million (€94 million) in 2017. The EU will eliminate these tariffs on a Most Favoured Nation (MFN) basis, retroactive to begin August 1, 2020.

The United States in return will reduce by 50 per cent its tariff rates on some products exported by the EU to include certain prepared meals, certain crystal glassware, surface preparations, propellant powders, cigarette lighters and lighter parts.

"As part of improving EU-US relations, this mutually beneficial agreement will bring positive results to the economies of both the United States and the European Union.

"We intend for this package of tariff reductions to mark just the beginning of a process that will lead to additional agreements that create more free, fair, and reciprocal transatlantic trade" said Ambassador Lighthizer and Commissioner Hogan.

Whilst Britain still tries to obtain its own special deal with the USA, this is the first tariff deal done between the EU and USA in more than 20 years.

Source: euroweeklynews.com