In a bid to avoid the formation of a huge trade war between the two world’s most powerful economies, the European Union and United States have agreed to dilute their trade policies.
Earlier, the US unitarily and provocatively increased the import tariff of aluminium and steel from the EU. In retaliation, the European Union hiked the import tariff of some goods from the US.
With none of them showing no eagerness to step back from the provocation, it was believed in the initial stage that the tariff issue would lead to a huge trade war involving the world’s powerful economies.
Actually, the new agreement reached between the EU and US has successfully eliminates all possibilities of such a trade war.
As a part of the agreement, the US and EU have decided to increase their agricultural and services trades. It is expected that the US’ soya been trade and natural gas sectors as well as the EU’s service sectors would hugely benefit from the agreement.
At this stage, the terms and conditions of the agreement are not available. As per a report, the agreement seeks for the greater liberation of the economies of the EU and US, as opposed to US President Donald Trump’s protectionist policies.
Vignesh. S. G
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