IMPACT OF TARIFF CUTS
Removing industrial goods tariffs may have limited impact, with about two-thirds of goods already tariff-free. The average EU tariff rate on US goods is 1.35 per cent, according to think tank Bruegel. Cars, however, currently face a 10 per cent tariff.
The EU proposals also include farm produce concessions such as zero tariffs on potatoes, reduced rates for tomatoes and quotas for pork, cocoa and pizza. Beef, poultry, rice and ethanol were excluded.
“We are protecting our defensive interests there. What we are giving are commitments that are meaningful, but at the same time not very costly for us today,” a Commission official said, noting that other G7 countries had already liberalised trade with the EU.
APPROVAL NEEDED
The legislative proposal still requires approval from a majority of EU member states and from the European Parliament, a process expected to take several weeks.
Proponents of the deal pointed to a unique arrangement under which pre-existing US tariffs, such as 2.5 per cent for cars and up to 20 per cent for cheeses, are not added to the broad 15 per cent rate.
Some products including aircraft, cork and generic drugs are exempt from the 15 per cent tariff. But steel, aluminium and copper remain subject to 50 per cent duties.
