US, EU Agree On Framework Agreement For Bilateral Balanced Trade

(MENAFN- Kuwait News Agency (KUNA)) WASHINGTON, Aug 21 (KUNA) -- The United States and the European Union have agreed on a framework of an agreement on reciprocal, fair and balanced trade, the White House announced on Thursday.
This Framework Agreement represents a concrete demonstration of "our commitment to fair, balanced, and mutually beneficial trade and investment .. (It) will put our trade and investment relationship, one of the largest in the world, on a solid footing and will reinvigorate our economies' reindustrialization," the official statement said.
The White House statement continued adding that accord reflects acknowledgement by the European Union of the concerns of the United States and "our joint determination to resolve our trade imbalances and unleash the full potential of our combined economic power.
"The United States and the European Union intend (to render) this framework agreement to be a first step in a process that can be further expanded over time to cover additional areas and continue to improve market access and increase their trade and investment relationship.
The key terms include eliminating tariffs on all U.S. industrial goods and providing preferential market access for a wide range of U.S. seafood and agricultural goods, according to the statement jointly declared by the European Union.
The United States commits to apply the higher of either the U.S. Most Favored Nation (MFN) tariff rate or a tariff rate of 15 percent, comprised of the MFN tariff and a reciprocal tariff, on originating goods of the European Union. Additionally, effective as of September 1, 2025, the US commits to apply only the MFN tariff to various EU products including cork, aircraft, aircraft parts.
Washington intends to promptly ensure that pharmaceuticals, semiconductors, and lumber does not exceed 15 percent.
Moreover, the two sides commit to cooperate on ensuring secure, reliable, and diversified energy supplies, including by addressing non-tariff barriers that might restrict bilateral energy trade. As part of this effort, the EU intends to procure U.S. liquefied natural gas, oil, and nuclear energy products with an expected offtake valued at USD 750 billion through 2028. In addition, the EU intends to purchase at least USD 40 billion worth of U.S. AI chips for its computing centers.
The US and the EU which share one of the world's largest economic relationships, supported by mutual investment stocks exceeding USD five trillion, intend to promote and facilitate mutual investments on both sides of the Atlantic. In this context, European companies are expected to invest an additional USD 600 billion across strategic sectors in the United States through 2028.
This investment reflects the European Union's strong commitment to the transatlantic partnership and its recognition of the United States as the most secure and innovative destination for foreign investment.
Furthermore, also according to the agreement, the EU plans to substantially increase procurement of military and defense equipment from the US. (end)
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