This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious




US Agrees To EU Enlargement Compensation Agreement

by Leroy Baker, Tax-News.com, New York

27 March 2006

The United States and the European Union (EU) last week signed a bilateral trade agreement relating to the EU's expansion in May 2004 from 15 to 25 members.

The agreement reduces several agricultural and industrial tariffs to offset tariff increases that the EU implemented as a result of EU enlargement. It also gives the United States access to expanded tariff-rate quotas for a broad range of agricultural products.

Under the agreement, implementation of these concessions is to come into effect no later than July 1, 2006.

The 10 new members which acceded to the EU on May 1, 2004 and included Estonia, Latvia, Lithuania, Poland, Slovakia, the Czech Republic, Slovenia, Hungary, Cyprus and Malta, were required to change their tariff schedules to conform to the EU’s common external tariff schedule, resulting in increased tariffs on certain imported products.

“This is a good package that helps to enhance US access to the EU’s agriculture market for pork, corn gluten meal, processed products, and to key growth markets for our exports to the EU, such as fish," explained US Trade Representative Rob Portman.

"The agreement upholds our rights under WTO rules. We worked closely with US industries affected by the enlargement of the EU to secure the appropriate compensation," he added.

The key elements of the deal will see:

  • The EU will open new country-specific tariff-rate quotas for US exports of boneless ham, poultry, and corn gluten meal.
  • The EU will expand existing global tariff rate quotas for food preparations, fructose, pork, rice, barley, wheat, maize, preserved fruits, fruit juices, pasta, chocolate, petfood, beef, poultry, live bovine animals and sheep, and various cheeses and vegetables.
  • The EU will permanently reduce tariffs on protein concentrates, fish (hake, Alaska Pollack, surimi), chemicals (polyvinyl butyral), aluminum tube, and molybdenuym wire.
  • The United States will also benefit from the Most-Favored Nation concessions that third countries such as China, Japan, Brazil, Canada, and Australia are negotiating with the EU.

.

 

 






Write a comment