EU and US deal on lowering export tariffs | Financial

They will announce this in a joint statement. The rate cuts will take effect retroactively on both sides from 1 August. It is a package worth “hundreds of millions,” said US trade envoy Robert Lighthizer and EU Commissioner Phil Hogan.

It has been more than 20 years since the EU and US negotiated lower rates.

For a number of European exports, including certain ready meals, crystal glassware, cigarette lighters and parts thereof, Washington is cutting tariffs by 50 percent. The annual trade value for these goods is according to the European Commission 160 million dollars (approximately 136 million euros).

‘Improving relations’

The EU is abolishing taxes on US live and frozen lobster products. According to the latest figures for 2017, the trade value of this amounted to 111 million dollars (approximately 95 million euros). These tariffs will initially be scrapped for five years, but Brussels is starting a procedure to make this permanent.

Lighthizer and Hogan argue that the deal is part of an intended improvement in relations between Brussels and Washington. “This beneficial agreement for both sides will have a positive effect on the economies of both the US and the EU.”

The package is intended to “mark the beginning of a process that will lead to additional agreements that will create free, fair and reciprocal transatlantic trade.”

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