The European Union and the United States could strike a comprehensive trade deal as early as this weekend, ending months of uncertainty for European businesses, according to European officials and diplomats.
The agreement would likely include a 15 percent basic stamp duty on all European imports to America, and possibly a 50 percent surcharge on European steel and aluminum, officials and ambassadors said.
US President Donald Trump said on Friday that the chances of a trade truce between the United States and Europe were 50-50 or worse, adding that “Brussels is very keen to make a deal.”
“I would rate the likelihood of an agreement with the EU as fifty-fifty, maybe a little less, but still essentially fifty-fifty,” he noted.
Tánaiste Simon Harris has stressed that the EU is planning for any eventuality as the bloc has approved €93bn in reciprocal tariffs against the US.
Officials hope to reach an agreement to fix a 10-15 percent rate on goods going from Ireland to the United States, following a similar agreement reached by Japan.
The government has announced that agricultural products such as molasses, thoroughbred horses and sugar will be exempt from the duty drawback. If the levy is introduced, it would benefit Ireland by €33 million.
Harris is confident that an agreement with the US remains the best outcome, but a package of retaliatory steps has already been prepared.
“This is a signal to Washington that we are striving for an agreement, but at the same time we are capable of responding to any unexpected events,” he said.
“You also need a market with us; it is profitable for the US to trade with Europe.
“So let’s go back to the table, make a deal, but at the same time Europe will continue to be counter-prepared for all possible scenarios.”
Seamus Coffey of the Irish Fiscal Advisory Council believes that even a 15 per cent levy on pharmaceuticals would be significant.
“With this new uncertainty, they may reconsider their supply chains and move some production to other regions,” he said.
“Such a step could be taken quite quickly, and Donald Trump himself acknowledged this, noting that pharmaceutical companies would be given up to two years to reconfigure.
“But if 15 per cent comes into force as early as early August, it will have a significant impact on Irish pharmaceutical exports.”
Sourse: breakingnews.ie
