US, EU agree on new trade framework to rebalance transatlantic ties

By Necva Tastan Sevinc

ISTANBUL (AA)— The US and the European Union announced on Thursday a comprehensive new trade framework aimed at rebalancing one of the world's largest economic partnerships, promising tariff reductions, expanded market access, and closer cooperation in energy, technology, and defense.

In a joint statement, the two sides stated that the Framework on an Agreement on Reciprocal, Fair, and Balanced Trade will "reinvigorate our economies' reindustrialisation" and serve as a "first step" toward deeper cooperation.

Under the terms, the EU will eliminate tariffs on all US industrial goods and grant preferential access to a wide range of American seafood and agricultural exports, including dairy products, fruits, pork, and soybean oil. The EU will also extend and expand a previous tariff reduction on US lobster, which expired in July.

In return, Washington, DC, pledged to cap combined tariff rates on EU goods at 15% and to phase out certain Section 232 tariffs on aircraft, pharmaceuticals, and natural resources from Sept. 1.

The US also committed to reducing tariffs on EU automobiles and auto parts once the EU enacts its own tariff reductions.

Both sides agreed to explore further measures to protect their steel and aluminum sectors from global overcapacity, potentially through tariff-rate quotas, while reinforcing supply chains with each other.

- Energy, technology, and defense

The EU intends to procure $750 billion worth of US liquefied natural gas, oil, and nuclear energy products through 2028, alongside $40 billion in US-made artificial intelligence chips for European computing centers.

Brussels also pledged to boost procurement of US military and defense equipment, a move both sides said would strengthen NATO interoperability and deepen defense industrial ties.

European companies are expected to invest an additional $600 billion in strategic sectors in the US by 2028, reflecting what the statement called a recognition of the US as “the most secure and innovative destination for foreign investment.”

The US and EU also committed to aligning standards and reducing non-tariff barriers, particularly in automobiles, agriculture, digital trade, and cybersecurity.

Washington, DC, welcomed EU commitments to consult on customs reform and to ensure US conformity assessment bodies can operate as “Notified Bodies” under EU telecom rules.

Both sides said the deal underlines a shared determination to address “non-market practices” by third countries, ensure secure supply chains, and cooperate on export controls, labor rights, and intellectual property protections.

“The United States and the European Union share one of the world’s largest economic relationships,” the statement said.

“This Framework Agreement reflects our joint determination to resolve trade imbalances and unleash the full potential of our combined economic power.”