Breakthrough for EU-US trade

Last night EU and US leaders met in Washington for a very important discussion to dismiss the emerging trade war.

Sweden’s EU Commissioner Cecilia Malmström attended the meeting together with Donald Trump and the EU Commission President Jean-Claude Juncker.

Aftet the meeting a Press Confernece was held. Trump spoke first saying:

“A new phase of the relationship between the US and the EU has begun. We will work together to strengthen ties between the US and Europe populations”.

Juncker responded by saying:

“We have agreed today, and identified different areas to be exempt from taxes or duty tariffs. It was my goal and we have reached this”.

In summary, after the meeting, it can be noted that the US will not implement new import duties on passenger cars from the EU. The import duties on steel and aluminum from the EU remain, but should be “revalued”.

In addition, the US and EU will enter into negotiations to reduce tariffs on industrial goods to zero, and remove non-tariff barriers and financial support.

The United States and the EU will also work to reform the World Trade Organization WTO.

“Great to be back on track with the EU. This is a great day for a free and fair trade”

The main concern is to block gaps in WTO rules that China exploits to large state aid to Chinese companies, theft of intellectual property rights and forced technology transfer from foreign companies to Chinese.

Trumps tweeted after the meeting: ‘Great to be back on track with the EU. This is a great day for a free and fair trade’.

This is indeed a great breakthrough for EU-US trade and also a temporary stop of the increasing risks for an escalating trade war. Good news for world trade.