US and EU Agree On Framework Trade Deal

By Stefan J. Bos, Worthy News Europe Bureau Chief

TURNBERRY, SCOTLAND (Worthy News) – In a move expected to be welcomed by anxious financial markets, the United States agreed on a framework trade deal with Europe, although less favorable than the European Union had wanted.

U.S. President Donald J. Trump announced the agreement after the EU’s executive European Commission President Ursula von der Leyen travelled to Scotland to meet him for talks.

The deal, including a 15 percent tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment, will bring welcome clarity for EU companies.

It was also aimed to overcome a spiralling row between two allies who account for almost a third of global trade.

However, European critics saw the 15 percent baseline tariff as “a poor outcome” compared to the initial European ambition of a zero-for-zero tariff deal, although it is better than the threatened 30 percent rate.

In remarks to reporters, Trump said the deal would be “great for cars” and would significantly impact agriculture.

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He added that he is “looking at three or four other countries” to strike deals with, and those deals will most likely include some form of tariffs.

Commentators say Trump wants “to reorder” the global economy and reduce decades-old U.S. trade deficits. So far, Trump has secured agreements with Britain, Japan, Indonesia, and Vietnam.

However, his administration has failed to deliver on the promise of “90 deals in 90 days.”

Yet talking about the deal with the EU, the world’s largest trading bloc, called it “a good deal for everybody.”

He told the media at his golf resort in Turnberry, Scotland, “It’s going to bring us closer together… It’s a partnership in a sense.”

The EU’s chief executive, Von der Leyen, hailed it as a “huge deal,” which she admitted came after “tough negotiations.”

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