NATO defense deal to rebalance EU-U.S. trade relations: Antonio Costa

The NATO agreement has more than defense objectives for double recovery allies will rebalance Europe’s trade relations with the United States and see the region buy more American weapons, the president of the European Union, Antonio Costa said on Friday.

Earlier this week, NATO allies agreed For more than double their defense expenditure target of 2% of the gross domestic product at 5% by 2035.

This decision has solved the main problem linked to trade between Europe and the United States, CNBC COSTA Silvia told Costa Silvia.

“What we have decided to do is strengthen our position and assume greater responsibilities in our own defense. Then, I think we have already solved the main problem, and then I think the path is paved to solve other problems,” he said.

At least part of this higher defense expenditure will be used to “buy American”, according to Costa.

“And of course, if we buy more American, this means the rebalancing of trade relations. So that’s the reason – because I have always said that we cannot separate these two negotiations on the defense – [that this] was the most important problem for the United States, and [it] is already resolved. “”

Costa, who was Prime Minister of Portugal until last year, reiterated the previous statements of Trump according to which the military agreement is a “great victory”, adding that he effectively rebalances the sharing of defense loading.

The EU is among the business partners rushing to conclude an agreement with Washington before the deadline of US President Donald Trump for hiking, so-called reciprocal prices on imports of almost all countries.

Measures to an agreement were concluded this week after the United States presented a new proposal to the European Commission. The markets were also supported By the announcement of Thursday of the press secretary of the White House, Karoline Leavitt, that the deadlines of July 8 and 9 to restart the prices on the nations are “Not critical. “”

“Maybe it could be extended, but this is a decision to make for the president,” said Leavitt.

When asked if the EU could conclude an agreement before the July deadlines, Costa said the European Commission is currently assesing the White House commercial proposal.

“The two parties are very committed to finding a solution, and I hope that we will do it and that we will succeed before the ninth month of July,” he said.