Agreement between Trump and Juncker opens truces, but has vague objectives

The President of the European Commission, Jean-Claude Juncker, and US President Donald Trump issued Wednesday a series of measures in agriculture, industry and energy to mitigate their dispute commercial, but their ads are generally vague.

Trump emphasized the common will to advance "zero customs tariff" in their industrial exchanges, with the exception of the automotive sector, but no deadline has been set for this purpose. "We will work to reduce (customs) barriers and increase trade in services, chemicals and pharmaceuticals, medical products and soy," said Trump.

The White House is committed to "resolving" the issue of US tariffs on steel (25%) and aluminum (10%) of European origin. It is precisely these rates, applied since June 1, that have aggravated relations between Washington and Brussels. However, Trump did not say whether that meant his government would suspend or abolish these rates. Juncker also did not specify whether European retaliation at these rates would be lifted.

Trump also announced that the EU will begin "almost immediately" to buy "much more soy" from US producers without advertising volume. The soy issue could be a problem in Europe, since 94% of soybeans planted in the United States are genetically modified, according to USDA statistics.

The marketing of this product is mainly concerned, since the cultivation of genetically modified soya is prohibited in Europe. The EU imports a lot of Latin American soybeans because, after the Blair House of 1992 (1992 bilateral agreement), it gave up cultivating it.

A European source said that no new customs duty on European car imports into the United States will be imposed, a particularly sensitive issue for Germany, where this key industry employs around 800,000 people. The White House in late May instructed its Commerce Department to consider the possibility of imposing additional fees, up to 25%, on this strategic sector of the world and the US. European economy in particular.

The EU will also increase its imports of liquefied natural gas from the United States. "We will help them, but they will become mass buyers," says Trump.

Finally, the United States and the EU will work together to reform the World Trade Organization in order to "tackle the problem of practices". unfair trade practices, including intellectual property theft, forced technology transfer, industrial subsidies, distortions created by state-owned enterprises and overcapacity, "said Trump in a statement to China.