The AEP expressed concern over the new trade agreement between the European Union (EU) and the United States, reached on Sunday, July 27, stating it has implications for economic agents.
The AEP acknowledges that while the outcome is not ideal, the agreement brings “stability and predictability” to economic activities.
“It is important to highlight that the tariff set for the European Union, although equal to that applied to Japan, is higher than that granted to the United Kingdom. This reinforces the idea that this agreement is possible, but far from desirable,” the AEP stated.
“This new trade paradigm, coupled with other relevant factors such as the appreciation of the euro against the US dollar, presents significant challenges to the competitiveness of Portuguese goods exports in this market,” noted the business association, emphasizing that the United States absorbs “about 6.7% of Portuguese goods exports” and is “the fourth-largest customer for goods, and the first non-European one.”
Regarding the impact of customs duties on Portuguese companies, the AEP warned that they “are likely to be higher in sectors with greater exposure to the US, highlighting several areas of high productive specialization in the Portuguese economy, such as food goods, textiles, and footwear, as well as products from the chemical, metalworking, and equipment industries, among many others.”
In addition to the direct impacts on the trade relationship between Portugal and the United States, the AEP stressed that the agreement will have indirect effects, as other EU countries may reduce their purchases from Portugal if they start exporting less to the US market.
The AEP pointed out that “since this tariff applies to the other 26 countries of the European Union – the destination of more than 70% of Portuguese goods exports,” it is “expected” that European partners “will import fewer goods from Portugal,” with the automotive and textile sectors being the most affected.
Considering that there will be a “new commercial framework” with the world’s largest economy, the AEP called for “support measures for companies to mitigate the negative impacts on national exports and preserve the competitiveness of Portuguese companies in international markets,” without specifying which measures should be taken.
The EU-US trade agreement, reached on Sunday, sets US customs duties on European products at 15%.
The agreement also includes the EU’s commitment to purchase $750 billion worth of American energy (approximately €642 billion), aimed primarily at replacing Russian gas, an additional investment of $600 billion (€514 billion), and an increase in military material acquisitions.
The US and EU countries exchange about €4.4 billion in goods and services daily.
