The European Union and the United States have concluded negotiations to adjust the European Union’s World Trade Organisation (WTO) agricultural quotas, following the UK’s withdrawal from the EU.
This is the culmination of two years of negotiations in the WTO framework to divide these EU quotas, with part of the volume remaining with the EU 27, and part going to the UK, based on recent trade flows. The agreement covers dozens of quotas and billions of euros of trade including for beef, poultry, rice, dairy products, fruits and vegetables and wines.
Commenting on the agreement reached in principle today, Commissioner for Agriculture Janusz Wojciejowski said:
“I am delighted we have reached agreement with our most important trade partner the U.S. This agreement – done inside the framework of the WTO – preserves the original volumes but shares them between the EU and the UK. It gives certainty and stability to agricultural trade and our markets. I am particularly pleased that this agreement marks the significance of our trade and economic relationship. This sends a good signal of our commitment to work together both bilaterally and in the WTO framework. I want to thank my team and our U.S. colleagues for a job well done”.
The EU is conducting similar tariff rate quotas (TRQ) apportionment negotiations with twenty-one other partners having rights to access these quotas, and has concluded negotiations already with Argentina, Australia, Norway, Pakistan, Thailand, Indonesia and others.
EU and U.S. agree to suspend all tariffs linked to the Airbus and Boeing disputes
These negotiations have now been concluded coinciding with the agreement a few days ago between the European Union and the United States to suspend for a period of four months all retaliatory tariff measures on exports from both sides imposed in connection with the Airbus and Boeing disputes. The suspension allows both sides to focus on resolving this long-running dispute and is a major boost for EU exporters, as the US had been authorized to increase tariffs on USD 7.5 billion of EU exports. Similarly, the Union will suspend tariffs on approximately $4 billion of U.S. exports.
The EU and U.S. agreed to suspend all retaliatory tariffs on EU and U.S. exports imposed in the Airbus and Boeing disputes for a four-month period. The suspension allows both sides to focus on resolving this long-running dispute. It provides an important boost to EU exporters, since the U.S. had been authorised to raise tariffs on $7.5 billion of EU exports to the U.S. Similarly, EU tariffs will be suspended on some $4 billion worth of U.S. exports into the EU.