EU Starts Trade Negotiations with the U.S.
The European Union and the United States have the largest bilateral trade and investment relationship and enjoy the most integrated economic relationship in the world. The EU starts the trade negotiations with the U.S, as agreed by Presidents Juncker and Trump in July 2018 to eliminate barriers to transatlantic trade and generally improve the transatlantic trade relationship.
The European Union is delivering on what President Trump and I have agreed on 25 July 2018. We want a win-win situation on trade, beneficial for both the EU and the U.S. Notably we want to slash tariffs on industrial products as this could lead to an additional increase in EU and U.S. exports worth around €26 billion. The European Union and the United States have one of the most important economic relationships in the world. We want to further strengthen trade between us based on the positive spirit of last July.
EU Trade Commissioner Cecilia Malmström said:
This is a welcome decision that will help ease trade tensions. We are now ready to start formal talks for these two targeted agreements that will bring tangible benefits for people and economies on both sides of the Atlantic. I am convinced that breaking down barriers to trade between us can be win-win.
The directives for the negotiations cover two potential agreements with the U.S.:
– A trade agreement strictly focused on industrial goods, excluding agricultural products;
– A second agreement, on conformity assessment to make it easier for companies to prove their products meet technical requirements on both sides of the Atlantic.
In line with the directives agreed by EU governments, the Commission will further examine the potential economic, environmental and social impacts of the agreement, taking into account the commitments of the EU in international agreements, including the Paris Agreement on climate change. This assessment, as well as the negotiating process itself, will be conducted in regular dialogue with the European Parliament, Member States, civil society and all relevant stakeholders, in line with the European Commission’s commitment to transparency. As part of its engagement for an inclusive trade policy, the Commission is currently running a public consultation on voluntary regulatory cooperation.
An economic analysis by the European Commission shows that a targeted EU-US agreement eliminating tariffs on industrial goods would increase EU exports to the US by 8% and US exports to the EU by 9% by 2033. This corresponds to additional gains of €27 billion and €26 billion in EU and US exports respectively.
More information on current EU-US trade relationship visit europa.eu.