The United States and the European Union have entered a trade agreement, the White House announced on Thursday, adding that the dealrepresents a “concrete demonstration of our commitment to fair, balanced, and mutually beneficial trade and investment”.
“This FrameworkAgreementwill put our trade and investment relationship –one of thelargest in the world – on a solid footing and will reinvigorate our economies’reindustrialization,” the White House said in the statement.
The US said the agreement reflects that the EU acknowledgedUS concerns regardingtrade imbalances. The deal would “unleash the full potential of our combined economic power”, it added.
It said that the US and the European Union will expand the framework and continue to improve market access and increase trade and investment relationships.
Per the agreement, the US will impose 15 per cent tariffs on most European Union imports. The US will further lower auto tariffs once the EU passes matching legislation, slashing tariffs.
From September 1, theUS will apply only MFN tariffs on EU aircraft/parts, generics, chemical precursors, and scarce natural resources.
The EU will eliminate tariffs on all US industrial goods and grant preferential access for US seafood/agriculture.
Here are some salient points of the trade agreement.
Energy & Tech Purchases:
1. EU to buy $750B in US LNG, oil, and nuclear products.
2. EU to purchase at least $40B in US AI chips.
Investment & Cooperation:
1. EU firms to invest $600B in US strategic sectors by 2028.
2. Both sides to negotiate rules of origin to ensure benefits remain bilateral.
3. Exploring cooperation on steel and aluminum market protections.
4. Joint commitment to tackle digital trade barriers; EU pledges not to adopt network usage fees.