The EU and the US agreed on a four-month suspension on tariffs imposed on billions of dollars of imports to ease the burden on industry and workers and focus on conflict resolution.
The suspension will cover all US tariffs on $7.5 billion of EU imports and all EU duties on $4 billion of U.S. products, which resulted from subsidies for planemakers Boeing and Airbus.
The US tariffs cover EU planes and plane parts, Spanish olives, German coffee, wine and jam from France and Germany, liqueurs, cheese, pork, screwdrivers, and other tools from across the EU.
EU tariff targets include planes and parts, tractors, shovel-loaders, gym equipment, casino tables, tobacco, nuts, sweet potatoes, rum, and vodka.
The agreement, followed by a telephone call between U.S. President Joe Biden and European Commission President Ursula von der Leyen, also addresses trade distortive practices of China and other new entrants from non-market economies.
According to the White House, Biden had underscored his support for the EU and commitment to revitalizing the US-EU partnership.
Meanwhile, Von der Leyen described the accord as a very positive signal for economic cooperation in the years to come.
EU trade chief Valdis Dombrovskis said that the tariff removal is a win-win for both sides, especially with the pandemic hurting workers and economies.
The suspension will take effect upon the publication of official notices.
