This week marks the first anniversary of the Joint Statement by President Juncker and President Trump, which launched the new phase in the relationship between the United States and the European Union.
One year on, a series of concrete actions have been achieved, taking the trillion-dollar transatlantic trade relationship to the next level.A report on the implementation of the EU-U.S. Joint Statement of 25 July 2018 was published recently, providing an overview of the progress made and illustrating the depth of the engagement between EU and U.S. over the past year, both at political and technical level.
Developments at the commercial level
Since July 2018, the EU has significantly increased its imports of liquefied natural gas (LNG) from the U.S. by over 367%. So far, in 2019, one third of all U.S. LNG exports have gone to the EU. The U.S. is the EU’s third largest supplier of LNG, while the EU has emerged as the primary destination of U.S. LNG exports.
EU imports of U.S. soya beans increased by almost 100% from July 2018 to June 2019, compared to the same period the previous year. The United States is now Europe’s number one soya beans supplier and has been able to expand its market further, following the decision by the European Commission on 29 January 2019, to authorise the use of U.S. soya beans for biofuels.
Following the Council’s mandate of 15 April 2019 to open talks with the U.S. for a horizontal agreement on conformity assessment, there have already been three rounds of constructive discussions on regulatory cooperation. An EU-U.S. agreement would allow exporters from a wide range of sectors to get certification of their products in their own country (as opposed to, for example, sending samples to the export destination).
The Council gave the Commission the authorisation to open talks with the U.S. on eliminating tariffs on industrial goods. While it was not yet possible to launch negotiations in this area due to diverging objectives on the two sides, the EU remains ready to engage with the U.S. along the lines agreed between the two Presidents in July 2018.
Regarding cooperation on standards, the EU presented its ideas on a deeper cooperation in strategic sectors, in particular those related to emerging technologies, such as 3D printing, robotics and connected vehicles. Important progress has been made in the areas of pharmaceuticals, medical devices and cybersecurity. On pharmaceuticals, the EU and U.S. reached a milestone on 11 July 2019, as all EU Member State authorities were recognised under the Mutual Recognition Agreement (MRA) on good manufacturing practices for human medicines. This has already resulted in cutting of costs for businesses and freeing up administrative resources, by avoiding the duplication of inspections.
The EU and U.S. have engaged to identify and address distortions caused by unfair market-distorting trade practices. Together with Japan, both partners have submitted a joint proposal in the World Trade Organization (WTO) to enhance Members’ compliance with transparency requirements. The trilateral EU-U.S.-Japan process is also expected to lead to proposals for new rules on industrial subsidies and State Owned Enterprises.
In addition, a recent example that illustrates the excellent cooperation fostered in the spirit of the July 2018 Joint Statement, is the agreement found on the share of a duty-free tariff rate quota for U.S.exports of hormone-free beef to the EU market.
The EU continues to make the case for ending U.S. tariffs on steel and aluminium coming from the EU, which would also benefit the U.S., since Americanproducers would be able to source these materials more cheaply from the EU. The EU could then also remove the rebalancing tariffsonU.S.exports.
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