site.btaDeputy Economy Minister: EU-US Trade Deals Are Particularly important for Bulgaria in Automotive Industry, Standardization, and AI
Trade agreements between the European Union and the US are particularly important for Bulgaria in the automotive industry, standardization, and artificial intelligence, Deputy Minister of Economy and Industry Doncho Barbalov told BTA. Barbalov commented on the main points of the joint written statement published on Thursday by the EU and the US, outlining the agreement reached by EC President von der Leyen and US President Donald Trump on July 27.
Noting that the written statement reaffirms and further develops the political agreement of July 27, Deputy Minister Barbalov pointed out that it contains several interesting new elements, one of which is the settlement of the issue of tariffs on cars and motor vehicles exported by the EU to the US. In practice, these duties currently exceed 25%, but the joint statement specifies that they may be reduced to 15% in the month in which the EU initiates legislative changes to exempt certain US agricultural products from duties, Barbalov noted. He gave an example that, in practice, if such a legislative procedure begins in August, there will be a reduction in tariffs on motor vehicles exported by the EU to the United States. This also affects Bulgaria indirectly, because quite a few companies in Bulgaria produce parts for European manufacturers in the automotive industry, which are sold in Europe and the US, he said. In this regard, Barbalov added that the US and the EU will work on measures for the mutual recognition of standards related to motor vehicles, which, in his words, will be an additional incentive to facilitate trade between the two sides.
In the field of standardization, Barbalov further explained that the statement specifies that work will be done on the mutual recognition of agreements related to cybersecurity, adding that this is an issue that is important for the whole world at the moment.
Regarding the EU's commitment to purchase US goods, Barbalov said that the good news is that a planned purchase of up to USD 40 billion worth of chips for artificial intelligence has been specified. He added that this is also a priority area in which Bulgaria, like many other countries around the world, is developing. “As a country, we currently have a good leading role, and investments in artificial intelligence technology will help in these efforts,” he said.
Barbalov also noted that the statement reaffirms something that is true for the EU, unlike other countries, regarding the way these additional duties are imposed. In practice, the additional duties of 15% are not actually "additional" for the EU, but are 15%. If a tariff was up to 15%, it now becomes 15%; if it was above 15%, it remains the same, while in other countries the additional tariff is added to the existing tariffs, Barbalov explained, adding that this is also beneficial to European producers and European countries.
Bulgaria has always expressed its position in these talks from the perspective of steel, copper, and aluminum, and in this agreement there is an understanding to work towards creating a common defence mechanism for both markets against dumped imports—something the EU is already actively working on—and to discuss the possibility of introducing quotas, which would also benefit producers, Barbalov added. Talks on steel and aluminum are continuing, which is also in the interests of this country and its producers, he added.
Barbalov specified that the 15% tariffs on European imports into the US will come into force on September 1.
“I would not say that this reduces the risks for our economy, but what the agreement provides is clarity, because it is very important for every business to have clarity about the rules, when and what rules apply, so that it can respond in the most reasonable way from an economic point of view,” Barbalov said when asked about the effect of the agreement. “What we are doing at the Ministry of Economy and Industry is working with Bulgarian businesses and our foreign trade structures to offset the negative impact of these additional tariffs on those industries where there is such an impact,” said Barbalov. “So, on the one hand, we must use the opportunities that are available. On the other hand, where there will be a negative effect, we must work with businesses to find a mechanism to ease the pressure on them,” the Deputy Minister added.
/DS/
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