The new US agreement, which would drop tariffs on lobsters for five years, still needs to be approved by EU governments and the European Parliament. In October 2018, the two trading partners announced their intention to work towards a free trade agreement, although it is not in the midst of persistent political and trade issues. The areas of negotiation could be too difficult and the attempt to do so could amplify the differences, Ikenson said, especially since the European Commission has publicly expressed its concerns about the disputed negotiations. Under the agreement, the United States will reduce its tariffs on certain PRODUCTS exported by the EU by 50%, with an average value of $160 million, with retroactive effect to 1 August. These products include some prepared meals, some crystal glass products, surface preparations, greenhouse gas powders, cigarette lighters and lighter parts. “This is where Biden could set the tone,” Dan Ikenson, director of the Cato Institute`s Center for Trade Policy Studies, said in an interview. “On 20 January, it could lift tariffs on steel and aluminium imposed on the EU under the guise of protecting national security. This would be welcomed and would immediately reduce production costs in both regions. “We intend that this package of tariff reductions will only mark the beginning of a process that will lead to additional agreements that would create freer, fairer and reciprocal transatlantic trade,” they said. The bilateral customs agreement, which the United States and the EU intend to formally implement in the fall of 2020, was the culmination of negotiations that intensified following a meeting between President Trump and European Commission President Ursula von der Leyen in Davos in January 2020. Discussions between the US and the EU on possible tariff cuts and the elimination of non-tariff barriers began in earnest in July 2018, when President Trump met at the White House with Commission President von der Leyen`s predecessor, Commission President Jean-Claude Juncker. As part of the agreement, the EU will remove tariffs on imports of live and frozen lobster products into the United States.
U.S. exports of these products to the EU totaled more than $111 million in 2017. The EU will abolish these tariffs retroactively to 1 August 2020 on the basis of the Most Favoured Nation (MFN). EU tariffs will be abolished for a period of five years and the European Commission will work to make tariff changes sustainable. The United States will reduce its annual tariffs by 50% on average for certain EU exports, including certain prepared meals, some crystalline glasses, surface preparations, greenhouse gas powder, cigarette lighters and lighter parts. ZOLL reductions in the U.S. will also be based on the MFN and will be retroactive to August 1, 2020. The United States and the EU remain divided on many trade issues, including Tariffs imposed by Mr Trump on foreign steel and aluminum products, European taxes on technology giants and subsidies to Boeing and Airbus, which have resulted in tariffs on European goods worth $7.5 billion.
The European Union has agreed to eliminate tariffs on American lobster, one of President Donald Trump`s top priorities. Non-tariff barriers are due to different regulatory systems (including definitions of standards), but also to other non-tariff measures, such as. B those related to certain aspects of consumer safety or protection.