GENEVA, August 3. /TASS/. A trade deal between the United States and European Union is likely to entail new trade disputes between the sides and the further growth of tariffs on European imports in the United States, a German expert told TASS.
The trade agreement between the EU and US "gives rise to many questions," with the main one being whether it would be approved by the EU countries as it is now, said Thorsten Polleit, former Chief Economist of Degussa, Europe's largest precious metal trading house, and Honorary Professor of Economics at the University of Bayreuth.
He recalled that all trade agreements "require the approval by the community’s member states and by the European Parliament in some cases."
According to Polleit, whereas EU countries are likely to continue purchasing more US-made weapons because of Washington’s leading positions in this sphere, the situation around other parts of the deal is not that obvious. Thus, he doubted that EU countries are really ready to buy $750 billion worth of energy sources from the United States in the next three years. The European Union will hardly be able to make European companies commit themselves to invest $600 billion to the American economy, he stressed.
"I wouldn’t be surprised if the trade deal between the EU and US fails to be implemented as it was presented to the public," the expert noted. "It will definitely generate new disputes that will push the United States toward further raising tariffs on EU goods."
On July 27, European Commission President Ursula von der Leyen and US President Donald Trump at a meeting in Scotland agreed on import tariffs of 15% on approximately three-quarters of European goods entering the American market since August 1 instead of 30% tariffs on all imports threatened by Washington earlier. In return, the European Commission vowed to ban all imports of any Russian energy products to the EU and purchase American oil, gas and nuclear fuel to the tune of $750 billion as well as invest $600 billion in the US economy.