As part of the agreement, the EU will remove tariffs on imports of live and frozen lobster products into the United States. US exports of these products to the EU exceeded $111 million in 2017. The EU will remove these duties with retroactive effect to 1 August 2020 on a most-favoured-nation (MFN) basis. EU tariffs will be eliminated for a period of five years and the European Commission will try to perpetuate the tariff changes. The US will reduce tariffs by 50% on certain products exported by the EU, with an average annual trade value of $160 million, including certain ready meals, certain crystal glass products, surface preparations, propelled powder, cigarette lighters and lighter parts. The U.S. tariff reductions will also be made on the basis of the MFN and will apply retroactively to August 1, 2020. The United States established diplomatic relations with Italy in 1861, with most of the peninsula unified into a single state. In 1941, Italy – along with the other Axis powers of World War II, Germany and Japan – declared war on the United States. U.S.
relations with Italy were restored in 1944. Today, the United States and Italy enjoy cordial and friendly relations. This bilateral customs agreement, which the US and eu intend to formally implement in autumn 2020, was the culmination of negotiations that intensified after a meeting between President Trump and European Commission President Ursula von der Leyen in Davos, Switzerland, in January 2020. Discussions between the US and the EU on possible tariff reductions and the elimination of non-tariff barriers began in earner in July 2018, when President Trump met at the White House with Commission President von der Leyen`s predecessor, Commission President Jean-Claude Juncker. Italy is a firm and active transatlantic partner, and the United States and Italy have tried to promote democratic ideals and international cooperation, especially in areas of conflict and civil conflict. The partnership between the United States and Italy is one of our strongest, with Italy being the world leader in peacekeeping and military operations. Italy has also worked closely with the United States and others in the fight against drug trafficking, human trafficking and terrorism. In recent years, Italy has been an early and active partner in the fight against ISIS, coronavirus and Ebola. In addition, U.S. steel tariffs appear to be only the first step in a broader strategy, which has a hard trade line. Trump has already announced the start of an investigation into imported cars, which would hurt Italian exports much more directly. Another likely objective of US trade policy could be the agri-food sector, where the country has a large deficit and is a very important sector for Italy in this market.
The United States and Italy cooperate closely on important economic issues, including within the framework of the G7. The United States is one of Italy`s largest trading partners, with reciprocal trade in goods and services worth $103.112 billion in 2019. As a member of the European Union (EU), Italy is bound by EU treaties and legislation, including those that have a direct or indirect impact on business investment. Under both the treaty`s right of establishment and the Treaty of Friendship, Commerce and Navigation with the United States, Italy is generally required to grant national treatment to American investors established in Italy or another EU Member State. The two countries have adopted an income tax convention to avoid double taxation. Even if the increase in U.S. tariffs does not directly affect Italy`s main export sectors and could only have slight direct effects on trade, this does not mean that Italian exports will not be affected by a trade war and the imposition of high tariffs on the U.S. market.
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