July 27, 2018

More US soybeans making its way into Europe

In an effort to avoid a transatlantic trade war, US President Donald Trump and European Commission president Jean-Claude Juncker have come to an agreement earlier this week, to move towards a "zero tariffs" and "zero subsidies" trade partnership on non-automobile goods.

The leaders pledged to expand European imports of US soybeans and liquefied natural gas (LNG) and vowed to lower industrial tariffs while "holding off on other tariffs".

Discussions included a re-examination of US steel and aluminium tariffs and retaliatory duties imposed by the EU.

The US and EU have been in a trade dispute ever since President Trump announced tariffs on steel and aluminium in March and threatened to impose additional penalties on trading partners.

"I came to make a deal, and we made a deal today," Juncker said in a press conference at the White House. He confirmed that the EU will build more terminals to support bigger imports of LNG and Trump announced that the EU will be buying "a lot more" soybeans from the US.

Together, they will also work on addressing "unfair trade practices" at the World Trade Organisation. "We will not go against the spirit of this agreement unless either party terminates this negotiation," Trump added.