TARIFFS: EU Publish Proposals To Begin Impelementation Of EU-US Trade Deal

The European Commission has published a press release and Q&A regarding its latest proposals intended to pave the way for the implementation of the EU-US Joinst Statement of 21 Aug. EU: "These proposals are the first steps in said implementation and ensure tariff relief by the US for the vital EU automotive sector starting retroactively from 1st of August." US tariffs on EU cars and car parts stood at 27.5% since 2 April. With these proposals instigating the legislative procedure, the tariffs should drop to 15%. 

• The first proposal will see EU tariffs eliminated on US industrial goods, and give preferential market access for some US seafood and non-sensitive agricultural goods. The second proposal is to prolong the tariff-free status of US lobster.
• In terms of the products now subject to 0% tariffs, they will include "machinery, cars and car parts, wood and pulp of wood products, paper and paperboard, ceramics, or leather."
• Product-specific Tariff Rate Quotas will apply to "seafood, nuts, dairy products, fresh and processed fruits and vegetables, processed foods, grains and planting seeds, soybean oilseeds, pork and bison meat." The Q&A notes "the EU proposal does not include sensitive agricultural products such as beef, poultry, rice, or ethanol."
• The EU notes, "the US tariff reduction is not linked to the actual finalisation and implementation of the EU legislative proposal", which take place under the ordinary legislative procedure through the European Parliament and Council. As such, EU cars could be subject to the reduced tariff rates, while the EU insitutions are still in the process of lowering tariffs on the sectors outlined in the proposals.