President Trump and European Commission President Ursula von der Lin recently shook hands with a commercial agreement described as largely concluded. However, as detailed in the Yahoo financing article, there are great differences regarding the details of the agreement. Abstracts issued by the White House and the European Commission highlight at least five areas of difference, whether in terms of agreement itself or the packages of obligations.
Also read: The United States and the European Union concluded a deal: How does Trump’s deal return the United States and the European Union?
The White House emphasized “historical structural reforms and strategic obligations”, while the European Commission considers the handshake as “lawlessly”, with more negotiations. Despite President Trump’s assertion that the deal will be “at the end of the matter” and will not require further discussion for years, it is expected that the continuous negotiations will be as both sides are working on a legal obligatory text. There is expected to be an official joint statement about the deal this week.
One of the areas of agreement is to impose 15 % of the customs tariffs on almost all European Union goods, including cars, semi -conductors, and pharmaceutical preparations, which will be exempted from separate Trump plans. However, the deeper examination reveals more divisions. Trade Minister Howard Lootnick admitted the ongoing negotiations, saying that “there is a lot of horse circulation to be done,” while preserving the “basics.”
Regarding new European investments in the United States, the United States summarys $ 750 billion of energy and 600 billion dollars in corporate investments as fixed obligations. However, the European side uses a less specific language, indicating an “intention to buy” additional energy and “expressive interest” in more investments. In addition, while Trump claimed that the European markets will be “completely open”, the European summary indicates that “limited quantities” only of “non -sensitive” agricultural products will be allowed.
Another controversial point is the American assertion that Europe will buy military equipment worth hundreds of billions of dollars, a item that was not mentioned in the European summary. As commercial negotiations continue, stakeholders are awaiting a comprehensive and coherent joint statement to clarify these contradictions.
Source: Indexbox Market Intelligence
