European Commission: The trade agreement with the United States is the best possible settlement

Brussels on July 29 / WAM / The European Commission revealed the details of the new trade agreement between the European Union and the United States, describing it as a “best possible settlement” under very complex circumstances.

This agreement comes after negotiations that lasted for months, and it is expected to be issued in an official joint declaration between the two sides before August 1.

The most prominent of the agreement is the imposition of a 15% uniform customs tariff on most European exports to the American market, which is higher than the average previous fees amounting to 4.8%.

The car sector is the most affected, especially in Germany, which is the largest industrial engine in Europe, where European factories have begun to pay fees of 27.5% since April, compared to only 2.5% before President Donald Trump returned to the White House, which makes the current agreement a welcome mitigation in this context.

On the other hand, the agreement stipulates that during three years, Europe will import “natural gas, oil, and nuclear fuel” worth $ 750 billion, in a move aimed at reducing dependence on Russian gas and financing the war on Ukraine.

Brussels also announced the intention of European companies to invest up to $ 600 billion in the US market.

The agreement also includes a list of fees exempt that includes goods that the two parties consider “essential”, provided that this list is determined later, and it is likely to include American products such as nuts, cheese, some dairy derivatives and pet food, in exchange for a possible European exemption for industrial products such as machines, equipment and some chemical products associated with fertilizers, in addition to the possibilities of reducing fees on American cars in exchange for granting Similar concessions for the European aviation sector and medical devices.

Some fields are still witnessing ambiguity in the outputs of the agreement, especially the drug sectors and semi -conductors that are subject to American investigations that may end with high fees, while Brussels insists that fees on pharmaceutical products do not exceed 15%, which is opposed by the White House.

As for the European steel, it remains subject to customs duties of up to 50%, with a talk about the possibility of replacing it with a shares system that reduces the customs burden on the agreed quantities. On the other hand, the agreement still needs to ratify the member states of the European Union, amid ambiguity on the legal mechanism that Brussels will adopt.

Europe has prepared a list of American commodities that intend to impose fees worth 93 billion euros, starting on August 7, in the event that Washington did not commit to what was negotiated.

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