His agreement NATO to more than double the target of defense spending on Member States will balance its trade relations European Union (EU) With the US and will lead to increased markets of US weapons systems on the European side, European Council President Antonio Costa told CNBC.
Earlier in the week, NATO allies agreed to increase the target for defense spending from 2% of GDP to 5% to 2035. This move, according to Costa, solves the key obstacle related to EU and US trade.
“We have decided to strengthen our position and take greater responsibility in our own defense. I think we have already resolved the main issue and that the road is now opening to resolve the rest, ”he said.
Costa added that some of these additional defense spending will be directed to the market for US military equipment.
“And of course, since we buy more American products, then trade relations are balanced. That is why I always say that negotiations on defense cannot be separated from commercial. For the United States, this was the most important issue – and has now been resolved. “
Antonio Costa, who served as Prime Minister of Portugal until last year, reiterated that Donald Trump has described the new defense deal as a “big victory” for the US, adding that the weights were actually re -established.
The EU is one of the trade partners seeking to reach an agreement with Washington before the July deadline set by President Trump to impose new reciprocal duties on imports from almost all countries.
Progress has been made this week when the US made a new proposal to the European Commission. The markets were also reinforced following statements by White House spokesman Carolin Levit that the dates of July 8 and 9 to impose duties “are not critical”.
“There may be an extension, but it is a decision the president will make,” Levit said.
Asked if it is possible to reach a trade agreement up to the above dates, Costa said the European Commission is considering the US proposal.
“Both sides are very committed to finding a solution and I hope we will achieve it before July 9th.”