The trade deal between the European Union and the US is off to a rocky start.
The preliminary agreement announced at the end of the in-person meeting between Scotland’s Ursula von der Leyen and Donald Trump has massively encouraged A wave of criticism Beyond its heavy, biased nature in favour of America.
On Monday, the European Commission spent the day explaining journalists and protecting the deal as an anchor for stability and predictability in difficult times.
Later, the story was given a new twist during the White House. Factsheet has been released On agreement with multiple claims that it contradicted the version of events presented by the committee several hours ago.
On Tuesday, Brussels replied Unique Statementwhich causes even more confusion.
Euronows takes a closer look at the clashes of the story.
Pharmaceuticals
What the White House says: Pharmaceuticals is subject to 15% customs duties, which apply to most EU-made products as of August 1.
What the committee says: Drugs will be spared from 15% tariffs for the time being and will instead remain at the current 0% rate until the Trump administration completes its investigation into Section 232 of the sector.
“There will be no tariffs on the drug this Friday,” the official said.
The US Section 232 investigation could lead to painful tariffs for TaylorMade, as with steel and aluminum, but the committee expects 15% to function as. Maximum ceilingblocks the imposition of additional obligations.
“I believe this commitment will be respected and respected in this case,” said Malosh Schiffchovich, chairman of the European Trade Commission.
Energy purchase
What the White House says: The EU “double” American energy purchases and buys $750 million worth of money by the end of Trump’s second term. In reality, this amounts to $250 billion each year.
What the committee says: The committee that negotiated transactions on behalf of all 27 member states lacks the ability to determine the amount, type and origin of the energy supply acquired by governments and businesses. So it cannot legally bind the Bullock to its goal of spending $750 billion on American energy.
The numbers announced are signs based on the EU’s needs to phase out Russian fossil fuel consumption, and are difficult efforts that have helped boost the role that US liquefied natural gas (LNG) play.
“It is important to remember that the European Commission has not purchased any of these items and that the US government has not sold any of these,” a spokesperson for the committee said. “All of these are commercial decisions made by companies: companies that buy and companies that sell.”
A spokesperson noted that the $250 billion annual figure is full and now covers the regular purchase of American fuel, a range of technology and investments, ranging from $9.2 to $100 billion.
Investment pledge
What the White House says: The EU will invest $600 billion in the US by the end of Trump’s second term. “This new investment is on top of over $100 billion in EU companies already investing in the US each year,” the factsheet said.
What the committee says: Like energy purchases, the committee cannot design and implement investments on behalf of the private sector. $600 billion is another indication based on industry executive contact information.
“That is not something the EU can guarantee as a public institution. It is based on the intentions of private companies,” the official said.
The $600 billion total could shrink as the impact of the EU-US trade agreement, which is disadvantageous to BLOCs, begins to take effect.
Despite the uncertainty, the White House portrays energy and investment pledges Fait compri.
weapon
What the White House says: The EU “agrees to purchase a large amount of US military equipment,” the fact sheet states without quoting financial figures.
What the committee says: It’s definitely not. The committee has defied its commitment to strengthening the purchase of American-made weapons.
This is a very sensitive issue for Brussels, given that defense is a strictly national ability that member states are enthusiastically defended. Ursula von der Reyen has been promoted Ambitious initiative The final decision on how this money is being spent or whether it is being spent at all to promote defence spending is only at the hands of the capital.
“Weapon procurement is not a matter of the committee,” the official said.
“I think this was a statement of hope on President Trump’s part that increased defense spending (Europe) would benefit US defense companies due to the quality of US defense equipment, but it was never calculated by the numbers we spoke.”
Steel and aluminum
What the White House says: Sectoral tariffs on steel and aluminum remain “unchanged.” This means that the EU will continue to pay the 50% charge that is charged. Trump administration Results of the section 232 survey.
“This new tariff regime will help bridge the longstanding trade imbalance between the US and Europe by generating hundreds of billions of dollars in revenue each year, encouraging local procurement, repurposing production and ensuring foreign producers contribute fair share to the US economy,” the fact sheet states.
What the committee says: The EU claims that the deal will establish a specific allocation system to resolve long-standing disputes over steel and aluminum. In this system, the amount of EU exports that fall within the quota benefits from lower tariff rates. If the quota is exceeded, 50% will be applied, the senior official explained.
Due to the embryonic state of the contract, the committee is still unable to provide technical details about how quotas actually work. According to the press release, the system is based on the “historical level” of steel and aluminum exports.
The White House fact sheet, as the committee said, refers to its commitment to providing “meaning quotas” to some products, but only in the context of US products bound by the EU market.
Digital and Agriculture Barriers
What the White House saysAs part of the New Deal, the US and the EU will address “non-tariff barriers” in food and agricultural trade, including “including the rationalization requirements for US pork and dairy sanitation certificates.” Both sides also address “unfair digital barriers,” adding that the White House, with its commitment to network royalties and zero obligations regarding electronic transmission.
What the committee saysYes, the EU is willing to streamline the hygiene certificates, which is the form, and discuss network fees, but that’s as long as it goes.
In response to the White House claims, Commission spokesman, Trade spokesman Olof Gill, said the bloc will retain the “right to regulate autonomously” at every stage.
“We’re not moving forward with regulations. We’re not moving the rules. We’re not running the systems that our citizens have built over the decades of trust,” Gill said.
“It does not form part of this agreement with the United States.”
Through negotiations ahead of the transaction, US officials have consistently denounced the block’s regulatory framework and called for the removal of digital rules, food safety standards and value-added tax (VAT) as the top stimulant.
