How can the EU interpret the commercial agreement between Washington and London?
It was with great enthusiasm that the president of the United States greeted the trade agreement reached by the United Kingdom last Thursday. Donald Trump and British Prime Minister Keir Strmer qualified the “historical” agreement.
However, many economists question the Scope of this commitment. A large part of British products will continue to be subject to Customs of 10%that is, at the “reciprocal” rate imposed in April by the American leader, currently suspended by a period of 90 days.
The conclusion of this agreement can be part of the discussions of the summit between the European Union and the United Kingdom, on May 19, in London. This conciliation can affect ties between the two European partners.
“I think it will cause some irritation in Brussels. And it is not because there is a direct conflict between the EU and the United Kingdom. It will not undermine the relationship between the EU and the United Kingdom. But it opens a bad precedent,” says Aslak Berg, a researcher at the European Reform Center.
“By authorizing the maintenance of these customs rights, the legitimacy of these customs rights, which are contrary to international law, is reinforced. But the investigator considers that this decision” will not cause permanent damage to relations between the European Union and the United Kingdom. “
British peculiarity
Aslak Berg points out that the case of London is unique. “The United Kingdom is in a different position of the EU in some aspects. The United Kingdom does not have a commercial surplus with the United States, and this is a great priority for the Trump administration.”
The researcher does not cease to refer to more subjective factors. “Trump likes the United Kingdom. He likes to be invited to Buckingham Palace. He liked the state visit. And he, Starmer, found a way of talking to Trump that allowed him to get along very well.
This agreement between the United States and the United Kingdom arises at a time when the EU threat Tax 95 billion euros of imported American products to its member states. The European Commission has name in a list of goods that can be subject to this additional taxes. The list includes Food products, automotive equipment, electrical equipment, aeronautical equipment and batteries. The commission also intends to have an intention of Action with the World Trade Organization (WTO).
It is precisely in terms of international law that the Washington and London trade agreement can cause EU difficulties.
“Politically, it is not necessarily a very good sign,” warns Ignacio García Bercero, a researcher at the Bruegel Institute.
“It was an important issue for the United Kingdom and the EU, along with other countries, to be in the position of being the holders of the WTO rules,” he adds.
For the researcher, the agreement made between Washington and London is not very commercial.
“There is no doubt that this is not a free trade agreement. The main thing that the United Kingdom obtained was a better treatment with respect to steel, aluminum and cars. It has achieved anything around 10%of customs rights,” says Ignacio García Bercero.
The “reciprocal” customs rights of the USA. UU. They apply to 20% of EU products. The measure was suspended for nowBut it will be added to 25% taxes on European cars and automotive equipment that enter the United States. The amount of 379 billion euros of EU exports to the United States will be subject to new customs rights.
