Washington, Aug 21 (AP) The United States and the European Union on Thursday issued a joint statement that frames the ongoing deal between the trading partners and solidifies some trade commitments.

“This Framework Agreement will put our trade and investment relationship — one of the largest in the world — on a solid footing and will reinvigorate our economies' reindustrialisation,” the document reads.

Together, the US and the EU have 44 per cent of the global economy.

Key points in the letter include a 15 per cent US tariff rate on most European goods, with specifics on auto tariffs tied to EU legislative actions.

In addition, the EU agrees to eliminate tariffs on industrial goods and many agricultural products, while the US will reduce tariffs accordingly. The agreement also covers USD 750 billion in energy purchases and USD 600 billion in EU investments by 2028. The agreement also addresses non-tariff barriers, digital trade and environmental regulations.

In July, President Donald Trump and European Commission President Ursula von der Leyen met briefly at Trump's Turnberry golf course in Scotland and announced a sweeping trade deal that imposes 15 per cent tariffs on most European goods, warding off Trump's threat of a 30 per cent rate if no deal had been reached by August 1.

Before the Republican US president returned to office for his second term, the US and the EU maintained generally low tariff levels in what is the largest bilateral trading relationship in the world, with about USD 2 trillion, around 1.7 trillion Euros, in annual trade. (AP) SKS NPK NPK

Tariff framework establishes reciprocal tariff adjustments and commitments on energy, investment, and non tariff trade measures. A bilateral Framework Agreement sets reciprocal trade and investment commitments: a uniform US tariff rate on most European goods with auto tariffs tied to EU legislative action; EU elimination of tariffs on industrial goods and many agricultural products with corresponding US tariff reductions; and provisions addressing non tariff barriers, digital trade, environmental regulatory alignment, plus time bound commercial commitments in energy purchases and cross border investment.