EU-US Framework Trade Agreement will help make trade cheaper
In August, the European Union and the United States issued a joint statement on a new framework agreement. This is intended to make trade between the two parties easier and cheaper.
applies to, e.g., cars, pharmaceuticals, semiconductors, and timber. This change should make it easier to export European products to the United States and at the same time reduce their price for American consumers.
In the statement, the EU, among other things, promised to remove tariffs on all industrial products imported from the US. This means that US businesses will be able to sell their products in Europe on more favourable terms. In addition, the EU will give US farmers better access to the European market, which may mean a wider range and possibly lower prices of some foodstuffs for European consumers.
In return, the US will reduce its existing high tariffs on imports of cars and car parts from Europe, which currently stand at 27.5%. However, this move is conditional on the EU first passing the necessary laws to remove tariffs on US goods. Both parties have also committed to preparing and signing a detailed agreement as soon as possible, setting out specific rules and conditions for mutual trade.
Overall, this framework agreement should bring greater stability and predictability for businesses on both sides of the Atlantic and more profitable purchases for end consumers on both parts.