President Donald Trump announced a framework for a new trade deal with the European Union that seeks to reduce tariffs and expand access for U.S. exports, with a particular focus on agricultural products.
The agreement, described as a “Cooperation Agreement on Reciprocal, Fair and Balanced Trade,” aims to fundamentally rebalance economic relations between the world’s two largest economies. Under the framework, the EU will eliminate tariffs on U.S. industrial goods and make significant investments in the American economy.
“This colossal deal will enable U.S. farmers, ranchers, fishermen, and manufacturers to increase U.S. exports, expand business opportunities, and help reduce the goods trade deficit with the European Union,” according to the announcement.
The framework includes commitments from the EU to invest $600 billion in the United States and purchase $750 billion in U.S. energy exports through 2028. The agreement also addresses non-tariff barriers affecting agricultural trade, including streamlining requirements for sanitary certificates for U.S. pork and dairy products.
The National Grain and Feed Association welcomed the announcement, calling it “a meaningful step forward in opening one of the world’s most restrictive markets to American producers.”
“NGFA appreciates President Trump’s tireless efforts to expand international markets for U.S. agriculture,” said Mike Seyfert, president and CEO of NGFA. “We are encouraged by the President’s call to diversify agricultural trade with the EU.”
Seyfert noted that the agreement creates an opportunity to address longstanding non-tariff trade barriers that have limited U.S. agricultural exports to European markets.
“NGFA stands ready to work with the administration to ensure the agreement is finalized and implemented in a way that delivers real results for U.S. agriculture,” he added.
The deal marks a significant development in transatlantic trade relations, with the White House noting that previous administrations had tried and failed to reach a comprehensive trade agreement with the European Union.
