Both sides can claim victory, but devil may be in detail
After weekly tense negotiations between the best trade officials, the EU and the US finally made an agreement – and America comes on the eve of the latest tariff talks with China.
Ultimately, leaders from Washington and Brussels had to sit face -to -face to reach a Sunday agreement.
This is something we see with other opportunities that President Donald Trump hit – his personal participation is pushing them over the line – even if the expectations of a breakthrough do not look bright.
This is important for both sides, because many businesses and work depends on what the EU calls “the world’s largest bilateral trade and investment relationship”.
Both President Trump and the European Commission President Ursula von der leyen can paint it as a victory.
For the EU, tariffs could have been 15% worse than 30% threatened – but not as good as the UK’s 10%.
For the United States, the tariff revenue of approximately 90 billion dollars (£ 67 billion) is equal to the expectation of tariff revenue for government chests based on last year’s trade figures.
Many other large numbers have been thrown in terms of how much the EU will invest in the US, but the devil will be detailed.
Exactly questions such as when these investments will be made and in which areas are not answered for now.
This agreement is sold as an important moment in relations between the US and the EU.
It was not easy to reach this point.
Washington and the 27 -national block both played hardball and both were not ready to easily give, so these talks went on to the tele.
However, both sides did not want these negotiations to go beyond the deadline for August 1st.
For years, the US President is afraid of what Europe has seen as unfair trade practices.
The first part of this is clear. Last year, it meant that the US had bought more than $ 236 billion goods than the EU was sold to the block.
Trump has a simplified view that this is unnecessarily abandoned by American reserve. The truth is that international trade is a more complex event.
The other complaint is that the EU’s strict arrangements about everything from cars to chickens make it difficult for American companies to sell their products in the EU.
When we get more details about this agreement, we can know how much it is done to address it.
However, the European Commission President Ursula von seemed to accept the need to address the gap.
While explaining the agreement, “We must balance again. We have an excellent trade relationship.
He continued: “A great trade volume we have together. So we will make it more sustainable.”
This agreement shows how serious the President Trump, the world’s largest economy, is doing business with everyone.
Given that the EU 27 consisted of many different countries, it seemed to be one of the more difficult trade agreements to be taken.
Days after the United States made another major agreement with Japan – there were agreements with England, Vietnam and Indonesia.
The other big ones on the table are the three largest trade partners of the USA – Mexico, Canada and China.
And in the mood of the US President of the United States, there may be more positive news for the global economy within the next 48 hours.
The US and China are organizing the next trade talks in Stockholm, Sweden on Monday and Tuesday.
There are some expectations that 90 days higher tariffs can be suspended.
A few days ago, Trump said that the United States “China” very well “and rare Toprak metal exports overcoming the great adhesion point.
Washington’s commercial negotiators, in a wide outlook of an EU agreement, are negotiating with Beijing in their sails.
However, China has adopted an irreconcilable approach than other US trade partners.
And if negotiations between the two largest economies in the world are reduced, global trade may still go to the wavy waters in the coming months.
