EU seeks to reset trade ties with US — Bloomberg
Photo: EU prepares plan to renew trade relations with US (Getty Images)
The European Union is preparing a new plan that provides for the implementation of a trade agreement with the United States, Bloomberg reports.
According to the agency's sources, this move is a response to proposals that Washington sent to Brussels earlier this year, demanding a legally binding plan to revise EU rules that, in their words, harm American businesses.
The agreement, signed by European Commission President Ursula von der Leyen and US President Donald Trump in August, set a 15% tariff on most EU goods imported into the US, but also included a commitment to continue working on issues such as combating steel exports and non-tariff barriers.
The 15% rate also applies to cars, and the EU wants to ensure that it also applies to other industries that may be subject to sectoral tariffs in the US in the future.
The so-called implementation action plan, which has not yet been presented by the US, will focus on five areas. These are tariffs and market access, where the EU is seeking lower rates, including on wine and spirits.
The plan also aims to engage in dialogue to address issues such as standards, digital trade, technical barriers, and other trade complaints.
The EU still faces a 50% tariff on steel and aluminum exports, as well as on many derivative products. Europe is particularly concerned that the wide range of goods covered by the tariffs risks undermining the 15% tariff ceiling agreed with the US.
According to sources, the proposed action plan also includes setting up an economic security working group that'll focus on stuff like investment screening, export controls, procurement, and supply of critical raw materials.
The US and the European Union have previously finalized a trade agreement. It includes a 15% US tariff on most European goods, including cars, medicines, semiconductors, and wood.
