EU, US to end trade tariffs: summit draft

·2-min read

The leaders of the European Union and the United States are set to commit at a summit in Brussels next week to ending their trans-Atlantic trade disputes, and to call for a new study into the origins of COVID-19, according to a draft communique.

The seven-page draft, seen by Reuters, seeks to show concrete results of the "new dawn" hailed by EU leaders when US President Joe Biden took over from Donald Trump in January.

The draft, which will be discussed by EU ambassadors on Wednesday, commits to ending a long-running spat over subsidies to aircraft makers before July 11, and to lifting steel tariffs imposed three years ago by December.

Despite pressure by US steel industry groups to keep the "Section 232" national security tariffs imposed by Trump, the draft says: "We commit to work towards lifting before 1 December 2021 all additional/punitive tariffs on both sides linked to our steel and aluminium dispute."

The EU and the United States are the world's top trading powers, along with China, but Trump sought to sideline the EU.

After scotching a free-trade agreement with the EU, the Trump administration focused on shrinking a growing US deficit in goods trade. Biden, however, sees the EU as an ally in promoting free trade, as well as fighting climate change and ending the COVID-19 pandemic.

At the Brussels summit, both sides will agree to co-operate on China policy and also call for a new study into the origins of the COVID-19 pandemic, first detected in the Chinese city of Wuhan, the draft says.

The two prevailing theories are that the virus jumped from animals, possibly bats, to humans, or that it escaped from a virology laboratory in Wuhan. Members of a WHO team that visited China this year to investigate COVID-19's origin said they were not given access to all data, fuelling the debate.

If agreed, the joint stance on China will be a boost for the Biden administration, which seeks friends to stand up to Beijing but has said it will not force any ally to choose sides.

The draft also promises an effort to help vaccinate at least two-thirds of the world's population against COVID-19 by the end of 2022.

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