EU, US Publish Joint Statement on Transatlantic Trade and Investment
The European Commission (EC) has announced the publication of a Joint Statement with the United States, establishing a framework aimed at fostering fair, balanced, and mutually beneficial transatlantic trade and investment. This statement serves as a confirmation and expansion of the political agreement previously reached by EC President Ursula von der Leyen and US President Donald Trump.
According to the European Commission, the Joint Statement expresses a commitment from both sides to restore stability and predictability in EU-US trade and investment, with benefits expected for businesses and citizens alike. This marks the first step in a comprehensive process designed to enhance trade and improve market access across various sectors.
The Joint Statement is the result of extensive negotiations spearheaded by EU Trade Commissioner Maroš Šefčovič, alongside US counterparts Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer. Among its key features is a detailed description of the new US tariff regime for EU exports. This includes a “clear maximum, all-inclusive” tariff rate of 15% for a majority of EU exports, such as strategic sectors like automobiles, pharmaceuticals, semiconductors, and lumber.
Products that are already subject to tariffs of 15 percent or higher under the Most Favoured Nation (MFN) rules will not incur additional tariffs. For automobiles and car parts, the 15% US tariff cap will be applied concurrently with the EU’s initiation of procedures to reduce tariffs on US products.
Effective from September 1, certain product groups will benefit from a special regime, with only MFN tariffs being applicable. These groups include unavailable natural resources like cork, aircraft and their parts, generic pharmaceuticals along with their ingredients, and chemical precursors.
Moreover, both sides have agreed to continue their ambitious work in expanding this regime to cover additional product categories, underscoring a significant deliverable for the European Union.
Recognizing common challenges and benefits of cooperation, the EU and US plan to protect their economies from steel and aluminium sector overcapacity. Efforts will also focus on establishing secure supply chains, potentially including a tariff rate quota solution for EU steel and aluminium exports, alongside their derivative products.
While the European Union remains convinced that high tariffs can be harmful to the global economy, the negotiation outcome has successfully avoided harmful escalation. It establishes a foundation for continued dialogue and the development of the transatlantic relationship, especially in areas of shared strategic importance.
Currently, the transatlantic relationship is the most valuable economic partnership in the world, valued at 1.6 trillion euros annually. This agreement safeguards this relationship and protects millions of EU jobs.
The European Commission has stated its intent to swiftly implement the main aspects of the deal, garnering support from EU member states and the European Parliament and following appropriate internal procedures.
Additionally, the EU will engage in further negotiations to establish a “fair, balanced and mutually beneficial” trade agreement with the United States as outlined by the agreed framework and applicable procedures.
Following the political agreement between the EU and the US, the European Union suspended its rebalancing measures effective from August 7, marking a crucial step forward in reinforcing this pivotal economic partnership.
