The Strategist

EU, US set new agricultural trade quotas

03/09/2021 - 03:57

The European Union and the United States have concluded negotiations to adjust EU import quotas for agricultural products from the United States by billions of euros, which was necessary because of Brexit, the European Commission said in a statement.

Samuel M Beebe
Samuel M Beebe
"The European Union and the United States have concluded negotiations on an adjustment of EU agricultural quotas within the World Trade Organisation following the UK's withdrawal from the EU," the statement said.

It is about the post-Brexit division of quotas between the EU, which has 27 countries remaining, and Britain, which has left the union, the release reveals. These are quotas that allow a predetermined quantity of a product to be imported into the EU at a lower import duty rate than the duty rate normally available for that product, the EC said in the release.

"The agreement covers dozens of quotas and billions of euros of trade, covering beef, poultry, rice, dairy products, fruit, vegetables and wine," it explained. The US is the most important trading partner for the EU, the EC noted.

The EU is in similar negotiations on proportional distribution of tariff quotas with 21 other countries eligible to access these quotas. Similar negotiations have already been completed with Argentina, Australia, Norway, Pakistan, Thailand and Indonesia, among others.

Once the European Commission, which represents the entire European Union at the WTO and deals with trade policy and trade agreements, has approved the agreement with the US, it will be sent to the EU Council and the European Parliament for approval and ratification. After all these approvals, the agreement will be able to enter into force.