US, EU Release Details of Trade Deal

The European Union will strive to ensure lower U.S. tariffs apply to its car exports retroactively, EU trade chief Maros Sefcovic said on Thursday, as the transatlantic partners set out details of their framework trade deal struck in July.

In a 3-1/2-page joint statement, the two sides spelled out that 15% U.S. tariffs would apply to most EU imports and listed the commitments made, including the EU's pledge to eliminate tariffs on U.S. industrial goods and to give preferential market access for a wide range of U.S. seafood and agricultural goods.

Washington will take steps to reduce the current 27.5% U.S. tariffs on cars and car parts, a huge burden for European carmakers, once Brussels introduces the legislation needed to enact promised tariff cuts on U.S. goods, it said.

The statement said U.S. tariff relief on autos and auto parts would kick in on the first day of the month in which the EU introduced the legislation.
Sefcovic said it was the European Commission's "firm intention" to make proposals by the end of the month, meaning the U.S. car tariff reduction would apply from August 1.

The joint statement noted that the U.S. agreed to apply only pre-existing Most Favored Nation (MFN) tariffs of below 15% from September 1 on EU aircraft and parts, generic pharmaceuticals and ingredients, chemical precursors and unavailable natural resources, including cork.

This exemption did apply to include wine or spirits, a key EU demand, but the two sides agreed to consider other sectors and products for inclusions.
"So these doors are not closed forever," Sefcovic said, while acknowledging that securing an exemption for alcoholic drinks would not be easy.