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U.S. and European Union reach agreement on trade

Source: Wikimedia Commons

We have been waiting patiently for any good news on trade. Some glimmer of hope for agriculture. As Iowa Governor Kim Reynolds said two weeks ago, “We need to see something positive.” It looks as though we may have gotten that small sliver of positive news.

On Wednesday the United States and the European Union (EU) reached a trade agreement. Maybe agreement is a strong word, but at least they came to an understanding. President Trump and European Union President Jean-Claude Juncker made a rose garden announcement on trade.

Juncker says he came to the U.S. to make a deal.

The United States and EU make up over half of the world’s industrial production. The move is seen by some as a chance for the two to combat China in the global market.

While the deal doesn’t eliminate tariffs on steel and aluminum, it does stop the implementation of further tariffs on the EU and promises a reevaluation of the existing tariffs. The deal also calls for the increased import of U.S. Soybeans by the EU, but a number has yet to be released.