The President of the European Commission, Ursula von der Leyen, in an article published exclusively in Greece since iefimerida.gr, analyzed the new trade agreement between the European Union and the United States.
Von der Leyen called the agreement on transatlantic trade relations "a strong chapter, although not perfect", stressing that it was a conscious political choice that strengthened cooperation between the two sides.
In her article, the President of the European Commission responds to critical issues that have been raised around the content of the agreement. "The agreement closes a chapter, but the story of Europe's future prosperity has not yet been written," he said.
A new chapter in transatlantic trade relations: Strong even if it is not perfect
Every day, more than €4.6 billion worth of goods and services cross the Atlantic. With trade worth a total of €1.68 trillion per year, the economic relationship between the European Union and the United States of America is the longest in the world. That is why the agreement reached last month is extremely important.
Much has been written about this agreement. Some important issues need to be answered immediately. The agreement represents a conscious choice: stability and predictability instead of escalation and confrontation. Imagine what would happen if the two largest economic powers in the democratic world failed to agree and were driven to a trade war —the only ones who would be happy would be Moscow and Beijing.
Instead, we reached an agreement. While it's not perfect, it's a strong deal.
We believe that tariffs are taxes that are borne by consumers and businesses. They increase costs, reduce choices, and make economies less competitive. If we were to respond by retaliating with our own tariffs, we would risk triggering a costly trade war, with negative consequences for our workers, consumers and industries, while an escalation would not change the reality: US tariffs would continue to be higher and more unpredictable.
The most important element of our agreement is that we have set the very clear limit of 15% for the vast majority of EU products, including cars and pharmaceuticals. With the agreement, we have set a cap on tariffs, which ensures clarity and stability for the millions of Europeans who depend on trade with the United States for their livelihoods.
15% is the tariff rate for the European Union, which is universally applicable. The EU is the only one to be subject to this tariff ceiling with universal application. 15% and nothing more, in contrast to the agreements concluded by the US with other countries, where the new basic tariff rates will be added to the tariffs already in force until now. Thus, European goods will enter the US market on more favourable terms, which ensures a clear advantage for EU businesses.
We are also the only partners to have obtained an exclusive guarantee for a tariff cap in the pharmaceutical, semiconductor and timber sectors. In addition, we have ensured zero tariffs on strategic products, such as aircraft parts and generic medicines. We are not talking here about abstract categories of goods: these are products that are crucial to Europe's competitiveness. The fact that they are still not subject to tariffs strengthens both the EU and the US. Both sides pledged to continue working on expanding this list.
At the same time, the EU has remained steadfast in its fundamental principles. Our rules remain unchanged. We decide how to safeguard food safety, how to protect European citizens online and how to guarantee health and safety. This agreement protects our values while promoting our interests.
The agreement closes a chapter, but the story of Europe's future prosperity has not yet been written. The economic relationship with the United States may be the most important relationship for us, but it is only part of a much larger picture. The US is the largest destination for European trade, but it still accounts for only about 20 % of our goods exports.
That is why Europe will continue to strengthen and diversify its trade links with every corner of the world to support EU exports, jobs and growth. That is why, in recent months, we have reached trade agreements with Mexico and Mercosur and deepened our ties with Switzerland and the United Kingdom. That is why we have concluded our talks with Indonesia and we intend to conclude an agreement with India by the end of the year. These partnerships strengthen bonds of trust and cooperation with our partners and enable us to tackle common global challenges together, such as the modernisation of the rules-based trading system.
Europe – and this is the most important thing – must strengthen its ability to operate in a more volatile world. This starts from within, with the completion of our single market. As Mario Draghi has rightly said, "high internal barriers and regulatory fragmentation harm growth far more than any tariff that a third country can impose." At the moment, the volume of trade between EU Member States does not reach even half the volume of trade between US states. If Europe wants to realise its potential, this is the most urgent challenge we face. From cutting red tape to strengthening cross-border services, we know what needs to be done to unleash European competitiveness – and this European Commission has dedicated its efforts to achieving these goals.
Europe continues to look to the horizon. It is up to us to complete our single market, to strengthen our competitiveness and sustainability in the industries of tomorrow and to ensure that Europe continues to be a pillar of stability in an increasingly uncertain world. If we want a strong and independent Europe, we must have both the ambition and the unity needed to make it a reality.
