EU and US Agree to Trade Deal, Easing Uncertainty in Transatlantic Automotive Trade Relations

Strategic Insights -

The European Union and the United States have agreed to a trade deal that will ease uncertainty in transatlantic trade relations. The agreement, while welcome, retains higher tariffs on automobiles and automotive parts, which will continue to negatively impact industries in both the EU and the US. The European Automobile Manufacturers' Association (ACEA) has called for the EU and the US to focus on reducing obstacles to vital transatlantic automotive trade, paving the way for stronger economic ties and shared prosperity.

Key Takeaways:

  • The agreement takes an important step towards easing uncertainty in transatlantic trade relations, as stated by Sigrid de Vries, Director General of the European Automobile Manufacturers' Association (ACEA).
  • The US will retain higher tariffs on automobiles and automotive parts, impacting EU and US industries.
  • ACEA will closely examine the details of the agreement as they become available and assess the implications for Europe's vehicle manufacturing.
  • The EU and the US should focus on reducing obstacles to vital transatlantic automotive trade for stronger economic ties and shared prosperity.
  • The European Automobile Manufacturers' Association (ACEA) represents the 16 major Europe-based car, van, truck, and bus makers, including BMW Group, DAF Trucks, and Volkswagen Group.
  • 13.2 million Europeans work in the automotive sector, accounting for 10.3% of all manufacturing jobs in the EU.

Statistics:

  • 13.2 million Europeans work in the automotive sector.
  • 10.3% of all manufacturing jobs in the EU are in the automotive sector.
  • [euro]383.7 billion in tax revenue for European governments is generated by the automotive sector.
  • [euro]106.7 billion trade surplus for the European Union is generated by the automotive sector.
  • Over 7.5% of EU GDP generated by the auto industry.
  • [euro]72.8 billion in R&D spending annually, 33% of EU total.

Sources:

  • European Automobile Manufacturers' Association (ACEA)
  • https://www.acea.auto/