EU Ambassador on US Trade Deal: Predictability is Key

Trade Deal Framework and Stability

• 🤝 The EU and US are major trading partners, with $1.7 trillion in annual trade, making a stable, predictable, and clear pathway for trade relations extremely important.
• 📈 This predictability is a key element for businesses on both sides of the Atlantic, helping to avoid uncertainty.
• 📝 A joint statement is being finalized to serve as the framework for continued collaboration following the political agreement.

Addressing Investment Concerns

• 💰 The EU has a significant history of investment in the US, with approximately $5.4 trillion invested over the years, and at least $100 billion annually without major incentives.
• 🎯 European companies, including those in the auto, tech, and pharma sectors, are already invested across 46 US states, suggesting the $600 billion investment target is achievable if they continue their plans.
• ✅ The EU is committed to following through on its commitments.

Reaction from EU Leaders

• ⚠️ France and Germany have responded negatively to the trade deal, with France calling for tariff retaliation and Germany stating it will substantially damage its finances.
• ⚖️ France criticized the US for a complete disregard of World Trade Organization rules.

The Alternative to the Deal

• 📉 The alternative to the current deal could involve significantly higher tariffs, with potential increases from the current 15% to 20% or even 30%.
• 🚗 The EU was already paying 27.5% tariffs on cars and car parts before the August 1st deadline.
• 🌐 Negotiated solutions are crucial for massive transatlantic relations, and avoiding a situation with no deal is in the best interest of both businesses and leadership.