The transatlantic relationship was affected under Donald Trump.
There is now a “breakthrough” on the sidelines of the G20 summit.
Rome - The USA and the EU settled the trade conflict over steel and aluminum exports sparked three years ago by the then US President Donald Trump for the time being.
Trump's successor Joe Biden welcomed a corresponding agreement at the G20 summit in Rome on Sunday as the beginning of a “new era” in transatlantic relations.
EU Commission President Ursula von der Leyen spoke at a joint press conference with Biden about an "important stage".
US Secretary of Commerce Gina Raimondo announced on Saturday on the sidelines of the G20 summit that Washington would lift punitive tariffs on steel and aluminum from Europe, which were imposed by Trump three years ago.
“Limited quantities” of steel and aluminum from the EU could now be imported into the USA again duty-free.
"New era": USA and EU settle trade dispute - the conflict was sparked by Trump
In return, the EU will waive tariffs on US goods such as whiskey, jeans and Harley-Davidson motorcycles, which would have been due from December 1, said Valdis Dombrovskis, EU Commission Vice-President responsible for foreign trade.
“These conversations were far from easy and the solution is not perfect,” he admitted.
"But it does mean we can leave one of President Trump's most visible annoyances behind us."
Trade relations between the EU and the USA had worsened massively under Trump *.
Trump accused the EU of unfair competition and imposed punitive tariffs on steel and aluminum products from Europe in 2018.
Brussels responded with counter tariffs on US goods.
When Biden took office, the relationship relaxed.
In May Brussels and Washington started talks to find a solution to the trade conflict.
Biden now praised the dispute settlement as "proof of the strength of our partnership and of what the US can achieve by working with its friends".
Von der Leyen was more reserved: "We have restored trust and communication," said the Commission President.
Trade dispute between EU and USA: Global agreement for the steel and aluminum sector
Meanwhile, her deputy, Dombrovskis, announced that the EU would not initially withdraw its complaint against the United States at the World Trade Organization, but would merely suspend it.
"The threat (from the US) has not disappeared and we have to keep a way back in case something goes wrong," said a representative of the EU Commission.
Both sides announced that they would finally settle the trade dispute within the framework of a global agreement for the steel and aluminum sector.
The industry's contribution to climate change and the Chinese overproduction of cheap steel are also to be addressed.
Making such an agreement compatible with the WTO "will be a major challenge," warned the Commission representative.
(AFP / aka) * Merkur.de is an offer from IPPEN.MEDIA.
