The European Union has agreed to end tariffs worth $111 million on the import of live and frozen lobsters from the United States, a move aimed at de-escalating trade tensions between the two.
In return, the U.S. will eliminate its tariffs on $160 million of imports from the 27 member trading bloc, including prepared meals.
See Also:Trade NewsThe deal has not yet been approved by all the other European institutions, but is seen as a critical first step in unwinding 20 years of trade tensions. The decision marks the first time tariffs have been removed by either side in that time period.
“We intend for this package of tariff reductions to mark just the beginning of a process that will lead to additional agreements that create more free, fair and reciprocal transatlantic trade,” U.S. Trade Representative Robert Lighthizer and European Trade Commissioner Phil Hogan said in a joint statement.
While tariffs on packaged Spanish olive oil imports as well as imports of some types of table olives from France and Spain will remain in place, negotiators on both sides of the Atlantic are confident that this de-escalation will not be an isolated incident.
A European Commission spokesperson hinted to CNBC that this negotiation could be the first step in bringing the two sides to the table to discuss aircraft subsidies given to Airbus and Boeing.
On behalf of the U.S., the World Trade Organization (WTO) has already ruled that the E.U. illegally subsidized Airbus and awarded $7.5 billion of countermeasures. The WTO is also expected to rule in favor of the E.U. on a similar case regarding subsidies provided to U.S. manufacturer, Boeing. That ruling is expected to come later in the summer.
“The Commission and the U.S. see this agreement as a good basis and first step for further improving E.U.-U.S. trade relations,” the spokesperson told CNBC. “The package builds on both sides’ commitment to find a negotiated solution for the longstanding aircraft dispute.”
Related Articles
Nov. 21, 2023
The Agronomic and Macroeconomic Forces Behind Olive Oil Prices in Italy
Despite an anticipated production rebound in Italy, prices will likely remain high. Farmers will need to adapt to a new reality.
Oct. 30, 2023
Award-Winning Producer Highlights Growth in South African Industry
On a 330-year-old farm, the NYIOOC award-winning Babylonstoren has become one of South Africa’s largest olive oil producers.
Feb. 29, 2024
Campaign Aims to Curb Misuse of 'Regenerative' in Agriculture
With rising demand for organic olive oil, California farmers are at the forefront of efforts to promote the true meaning of organic, regenerative agriculture.
Aug. 14, 2023
Tunisia Has a Plan to Boost Its Olive Oil Industry
The strategy aims to increase annual production of extra virgin olive oil while growing packaged exports and domestic consumption.
Jun. 27, 2023
How Awards Helped One Tunisian Producer Thrive in the Lucrative U.S. Market
The NYIOOC award-winning producer behind Massiva combines generations of olive oil production experience with adept marketing.
Jan. 30, 2024
Starbucks Expands Oleato Line to All U.S. Stores
The move comes as the company braces for the publication of disappointing economic data and one year after the line of beverages made its debut in Italy.
Nov. 20, 2023
Languedoc Extra Virgin Olive Oil Receives PDO Certification
Made from the local Lucques and Olivière varieties, Languedoc becomes France’s ninth extra virgin olive oil to receive Protected Designation of Origin status.
Aug. 15, 2023
Farms Facing Natural Constraints Play Key Role in European Agriculture
Farms facing natural challenges are less profitable than conventional ones but play a critical role in biodiversity and landscape preservation.