Frankfurt (Reuters)-The trade agreement between the United States and the European Union (EU) is close to the basic scenario established by the European Central Bank (ECB) even if uncertainties persist concerning key sectors such as pharmaceutical and semiconductors, said the president of the ECB on Wednesday.
Brussels concluded last month with Washington a framework agreement providing for the establishment of customs duties of 15% on most of the EU product exports to the United States.
“The trade agreement establishes an average effective rate estimated between 12% and 16% for American imports of goods in the euro zone,” said Christine Lagarde during a speech in Geneva.
“This effective average rate is slightly higher-but nevertheless close-to the hypotheses used in our reference projections last June,” she added.
“The result of the trade agreement is much lower than the extreme scenario of an increase in American customs duties over 20%,” notes the president of the BCE.
According to the basic projections of the ECB established in June, the growth of the gross domestic product (GDP) of the euro zone should be 1.1% in 2026. In the “extreme scenario”, growth would have only been 0.7%.
“While the United States is-and will remain-an important trading partner, Europe should also seek to deepen its business links with other jurisdictions, by taking advantage of the assets of its economy oriented towards export,” said Christine Lagarde.
(Written by Balazs Koranyi; Blandine Hénault; edited by Augustin Turpin)
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