EU to Exempt Tariffs on US Lobsters
Change After Trump's Pressure to Raise Tariffs on European Cars
Signs of Possible Resolution in Trade Dispute Between Both Sides
Pompeo: "China Commits to Implement Phase One Trade Agreement"
[Asia Economy New York=Correspondent Baek Jong-min] The United States and the European Union (EU) have agreed to reduce import tariffs on certain items, including American lobster. This is widely regarded as a victory for the United States. Secretary of State Mike Pompeo mentioned that China has promised to implement the Phase One US-China trade agreement and has fulfilled some purchase commitments, reminding that the trade agreement will be carried out as promised.
According to foreign media such as The Wall Street Journal and BBC on the 21st (local time), under this agreement, the EU plans to eliminate tariffs on American lobster. The scale of these products exported from the US to the EU exceeded $111 million in 2017.
In return, the US will reduce tariffs by 50% on certain products amounting to $160 million annually in trade volume, including some crystal glass products, prepared foods, lighters, and their parts exported by the EU.
BBC reported that this tariff reduction is the first to be achieved through negotiations between the US and the EU in over 20 years.
BBC evaluated that Europe has raised its hands under US pressure, linking it to former President Donald Trump's threat to increase tariffs on European cars if the EU did not end tariffs on American lobster.
President Trump said at a meeting with fisheries workers in June, “If the EU does not immediately lower these (lobster) tariffs, I will impose tariffs on their cars. It’s the equivalent.”
There is also growing expectation that this agreement could serve as a turning point to resolve trade frictions between the US and the EU.
Robert Lighthizer, US Trade Representative (USTR), and Phil Hogan, EU Commissioner for Trade, who is equivalent to the EU executive branch, stated in a joint statement released that day, “As part of improving EU-US relations, this mutually beneficial agreement will bring positive results to the US and EU economies.”
They added, “This tariff reduction package is only the beginning of a process that will lead to further agreements to create free, fair, and reciprocal transatlantic trade.”
Pompeo: "China Promises to Implement Trade Agreement" "Dialogue Remains Open"
The US also maintained pressure while viewing the trade dispute with China positively.
US Secretary of State Mike Pompeo said in an interview with CNBC that “China has promised to implement the Phase One trade agreement.” He added that China has taken some measures to comply with the agreement, including purchasing American products.
Pompeo stated, “The Chinese have partially fulfilled their promised purchases. China must remember that there are many obligations beyond purchasing US products.”
Earlier, on the 15th, the US and China had scheduled a high-level meeting to review the implementation of the Phase One trade agreement, but it was canceled due to scheduling issues on the Chinese side. However, it is reported that both sides have agreed to hold this meeting soon.
Pompeo emphasized, “The US administration is willing to engage in dialogue with China,” but also stressed, “We will maintain a tough stance on US national security.”
Regarding the acquisition of the Chinese video-sharing company TikTok by a US company, he did not mention specific company names but predicted that “TikTok will no longer share American citizens’ personal information with the Chinese Communist Party.”
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