(BRUSSELS) – The EU Commission published a proposal Tuesday for a regulation to scrap duties on certain imports from the United States to the EU, with the US in return to reduce duties on certain EU exports to its market.
The proposal for a Council and European Parliament regulation to scrap import duties will put into effect an agreement announced by the EU and the U.S. on 21 August 2020. The tariff reductions between the EU and the U.S. will increase access to both EU and U.S. markets by around EUR 200 million per year.
“The EU and the U.S. share the most important economic partnership in the world, with trade in goods and services worth over 1.3 trillion annually,” said EC Executive Vice-President Valdis Dombrovskis: “This deal provides both sides with a true win-win outcome, helping us to strengthen our partnership even further.”
Once approved in line with the relevant procedures on either side of the Atlantic, the agreement will entail the reduction of U.S. tariffs on EU exports worth some $160 million a year.
This includes prepared meals, crystal glassware, surface preparations, propellant powders, lighters and lighter parts. On its side, the EU will eliminate tariffs on imports of U.S. live and frozen lobster products. U.S. exports of these products to the EU are worth some $111 million.
Both sides will eliminate those tariffs on a most-favoured nation (MFN) basis, i.e. for any partner, in line with the existing multilateral commitments. The measures will apply with retroactive effect as of 1 August 2020.