The United States and European Union have agreed a trade deal in which a 15% tariff is set to be placed on most EU exports entering the US market, though a final decision is yet to be made on alcohol.
Yesterday (27 July), the EU Commission announced that besides the 15% levy, the US and EU had also agreed on “zero-for-zero tariffs” on several goods, including “certain agricultural products”.
When asked in a press conference following the deal whether the zero-for-zero agreement included alcohol, spirits and wine, president of the Commission Ursula von der Leyen said “no decision” had been made yet.
She added that the topic was something that would be discussed in the “next days”.
In the Commission’s statement, the president added that the deal creates “more predictability for our businesses”.
She added: “We are ensuring immediate tariff relief. This will have a clear impact on the bottom lines of our companies. And with this deal, we are securing access to our largest export market. At the same time, we will give better access for American products in our market.
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By GlobalData“This will benefit European consumers and make our businesses more competitive. This deal provides a framework from which we will further reduce tariffs on more products, address non-tariff barriers, and cooperate on economic security.”
Secretary general of The Brewers of Europe, Julia Leferman said that the United States is the “second most significant export market for European breweries, accounting for over a quarter of total European beer exports.”
She added: “As it emerges that no decision has yet been taken on the treatment of alcoholic beverages and negotiations continue on the list of products – including agri-food, that could be covered by a zero-for-zero arrangement – The Brewers of Europe calls on EU and US negotiators to put beer on this list and also remove beer from the aluminium derivatives tariffs set by the US.”
Reflecting on the news, president of the European wine trade body Comité Européen des Entreprises Vins (CEEV) Marzia Varvaglione said: “We are still awaiting the full details of the agreement reached today and are watching with great anticipation the outcome of the upcoming negotiations regarding the list of products that will be included under the zero-for-zero tariff arrangement, among them some agricultural products”
“We truly believe the trade of wine is of great benefit for both EU and U.S. companies, and it must be included in the zero-for-zero tariff arrangement.
“And it’s not just the EU side saying this – our U.S. counterparts have also been strong advocates for protecting this vital exchange” Varvaglione added.
Meanwhile, secretary general of CEEV, Ignacio Sánchez Recarte said that it is “encouraging to know that we may be just days away from putting an end to the trade uncertainty that has weighed on our sector in recent months.”
He added: “However, the consequences of failing to include wine in the final zero-for-zero deal would be severe.
“We therefore call on negotiators to take decisive action: Include wine in the zero-for-zero agreement and safeguard a trade that has always delivered value, growth, and cooperation,” Recarte said.
President and CEO of the Distilled Spirits Council (DISCUS), Chris Swonger said the deal was “great news for US and EU relations, and we greatly appreciate President Trump’s leadership.”
He added: “We are optimistic that in the days ahead this positive meeting and agreement will lead to a return to zero-for-zero tariffs for US and EU spirits products”.
Just Drinks has also contacted spiritsEurope and FoodDrinkEurope for comment.
