The European Union (EU) and the United States concluded negotiations to adjust the agricultural quotas (agricultural tariff quotas) of the World Trade Organization (WTO) for the European Union.
The agreement, announced on Monday, came after the UK‘s withdrawal from the EU.
This is the culmination of two years of negotiations within the framework of the WTO to divide these agricultural quotas of the EU.
With this, part of the volume was left for the EU-27 and another part for the United Kingdom, based on recent trade flows.
The deal covers dozens of agricultural quotas and billions of euros of trade, for example in beef, poultry, rice, dairy products, fruit and vegetables and wines.
Agricultural quotas refer to when the import duties that apply to in-quota quantities are lower than those that apply to out-of-quota quantities (which can be high).
Janusz Wojciejowski, EU Commissioner for Agriculture, said: “The agreement brings security and stability to agricultural trade and our markets (…) It is a good sign of our commitment to collaboration, both bilaterally and within the framework of the WTO” .
The EU has already started similar negotiations on the allocation of tariff quotas with 21 other partners with access rights to these quotas, and has already concluded negotiations with Argentina, Australia, Norway, Pakistan, Thailand, Indonesia and others.
Once the Commission has adopted the Agreement, it will be submitted to the Council and the European Parliament for ratification, so that it can enter into force as soon as possible.
For her part, the Acting Trade Representative of the United States, María Pagán, commented: “I am pleased that we have concluded these negotiations with the EU, which marks an important milestone and clarifies an important trade issue related to the United Kingdom’s exit from the EU”.
The agreement will be signed and implemented once the EU completes the formal approval procedures.