Deal Over American Lobster Helps to Ease U.S.-EU Trade Tensions

08/24/2020

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Silvia Amaro | CNBC

The United States and the European Union have been embroiled in trade disputes over the last years, but a mini deal announced Friday marked a critical de-escalation in transatlantic tensions.

The European Commission, the executive arm of the EU, has agreed to end tariffs on U.S. frozen and live lobster for the next five years, with the aim to make this change permanent. The deal has yet to be approved by other European institutions, but it is a welcomed step by the struggling industry, which has had to cope with a trade war with China and fewer sales to the EU since the latter reached a wide trade agreement with Canada in 2017. In return, the U.S. will slash by 50% duties on certain EU goods, including crystal glassware and prepared meals.

More broadly, the announcement has opened the door to further trade agreements between both sides of the Atlantic.

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