U.S. and EU hatch mini-deal to cut lobster, other tariffs

imageCommoditiesAug 21, 2020 03:50PM ET

(C) Reuters. U.S. and EU flags are pictured during the visit of Vice President Pence to the European Commission headquarters in Brussels

By Philip Blenkinsop and Andrea Shalal

BRUSSELS/WASHINGTON (Reuters) – The United States and the European Union on Friday announced a mini-deal valued at around $200 million to cut import tariffs on a small range of products, including U.S. lobsters, in a sign of easing transatlantic trade tensions.

The two, who have been at odds over aircraft subsidies and U.S. President Donald Trump’s imposition of punitive tariffs on EU steel and aluminum, announced the deal in a joint statement.

“The importance of the deal is that it has unleashed positive results elsewhere,” an EU official said.

Under the agreement, the EU will remove tariffs of 8%-12% on imports of lobsters, while the United States will halve its duties on imports of certain glassware, ceramics, disposable lighters and prepared meals.

To comply with World Trade Organization rules, the lowered and removed tariffs will apply to all WTO members, although the products have been chosen so as to maximize the mutual benefits.

The whole deal is worth some 168 million euros ($198 million), based on 2019 trade. The EU imported some 42 million euros of U.S. lobsters and exported to the United States 126 million euros of the other products involved. The apparent mismatch is partly because the United States will only be halving, not removing, tariffs.

Lobsters have been a big concern for Trump, who threatened in June to impose tariffs on Europe and China over lobster duties.

Lawmakers from Maine have repeatedly called for aid for the lobster industry, which supports the livelihood of 4,500 state-licensed lobstermen and an additional 10,000 people.

U.S. Senator Angus King said the agreement would help level the playing field for U.S. producers whose European sales declined after a trade deal between Canada and the EU eliminated tariffs on Canadian lobsters. The U.S. industry has also been hurt by Chinese tariffs imposed in 2018 and the collapse of sales to restaurants during coronavirus-related lockdowns.

The agreement will still need approval from EU governments and the European Parliament. That could come within weeks.

Washington has subjected $7.5 billion of EU products, including Scottish whisky, French wine and European cheese, to tariffs because of a WTO case it won over EU subsidies given to planemaker Airbus (PA:AIR).

It had threatened to increase them. However, it carried out only very modest changes last week, a move welcomed by the European Commission as a sign of Washington’s willingness to work through a range of trade disputes with Brussels.

The WTO is expected to clear the way for European tariffs against U.S. products in a dispute over subsidies given to Boeing (N:BA) this autumn.

($1 = 0.8495 euros)

U.S. and EU hatch mini-deal to cut lobster, other tariffs

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>