lexpress.fr
EU and US Reach Trade Deal with 15% Tariff
The EU and US reached a trade agreement on July 27th, establishing a 15% tariff on most European imports to the US, with exemptions for certain sectors. The EU also committed to significant energy purchases and investments in the US, while focusing on strengthening trade relations with Mercosur, ASEAN, and India.
- What is the immediate impact of the newly signed US-EU trade agreement on tariffs and subsequent economic commitments?
- The EU and the US reached a trade agreement on July 27th, resulting in a 15% tariff on European goods imported into the US, down from a previous 25% on cars and avoiding a threatened 200% tariff on pharmaceuticals. The agreement includes exemptions for aeronautics and some chemicals, agricultural products, and strategic raw materials, while a compromise was found to reduce tariffs on steel and aluminum below certain quotas. The EU committed to $750 billion in energy purchases and $600 billion in additional investments in the US over three years.
- Why did the EU choose this agreement despite concerns about its terms, and what alternative strategies are central to its future trade policy?
- The EU's decision was influenced by the low probability of achieving a 10% tariff (like the UK), the understanding that future US trade relations would remain challenging, and the need to maintain strategic options. This led to focusing on other markets like Mercosur, ASEAN, and India. The success of these alternative trade deals, particularly the Mercosur agreement, is crucial for demonstrating the EU's reliability to other nations.
- What are the long-term implications of the EU's approach to this trade negotiation, considering the use of its trade tools and the broader geopolitical context?
- The EU's relatively cautious approach, avoiding the use of its full trade arsenal, creates uncertainty about its future leverage. While the agreement may minimize short-term economic damage, the US's history of imposing asymmetric trade deals and the unpredictability of its actions raise concerns about the long-term implications. The EU's success in securing alternative trade partnerships and the ratification of the Mercosur agreement will significantly impact its future bargaining power.
Cognitive Concepts
Framing Bias
The framing consistently portrays the EU as having been forced into a difficult agreement, emphasizing the pressure they faced from the US. The headline (if there was one, it is not included here) likely reinforces this narrative. The use of phrases such as "gueule de bois" (hangover) suggests a sense of defeat for those who advocated for a firmer stance against the US.
Language Bias
The language used is opinionated and emotionally charged at times. For example, the use of "ogre américain" (American ogre) is highly loaded language. Neutral alternatives would include "the US" or "the United States". The phrase "gueule de bois" (hangover) is also emotionally loaded.
Bias by Omission
The analysis focuses heavily on the EU's perspective and the narrative frames the agreement as a concession made under pressure. Missing is a detailed account of the US perspective on the negotiations and what concessions, if any, were made by the US. The article also omits an in-depth examination of the economic impacts of the agreement for both sides, limiting a comprehensive understanding.
False Dichotomy
The article presents a false dichotomy by portraying the situation as either accepting a 'disadvantageous agreement' or facing further trade conflict. It does not adequately explore the possibility of alternative outcomes or negotiation strategies that may have yielded more favorable terms for the EU.
Sustainable Development Goals
The EU-US trade deal, while involving tariffs, aims to stabilize economic relations and ensure continued growth by securing energy supplies and promoting investments. The agreement prevents further escalation of trade disputes and promotes economic stability, which is indirectly beneficial for jobs and growth. Focus on alternative markets like Mercosur, ASEAN, and India also demonstrates a proactive approach to economic diversification and growth.