Exclusive: Caobisco calls on EU nations to back US Turnberry trade deal

Caobisco European confectionery trade organisation has joined leading industry groups in calling for the EU Parliament to agree legislation linked to a new trade deal with the US, reports Neill Barston.

The deal – known as the Turnberry Agreement, was overseen in recent discussions between America’s administration and EU Commission president Ursula von der Leyen.

Under the terms of the agreement, the US would levy 15% tariffs on the EU,  which would be capped to ensure further rises – but while it was provisionally cleared for implementation last month, it has encountered notable pushback from some quarters in terms of the trade-offs from a European perspective.

As part of the trade deal, the EU has reportedly pledged to buy $750bn in US liquified gas, oil and energy, $40 billion in AI chips from America, as well as preferential access to agricultural markets within the EU – with many observers noting that Europe is not being offered direct equivalents or other like-for-like trade arrangements.

However, against a backdrop of wider trading uncertainties, the EU has forged ahead with proposals to accept the deal – which must be ratified within related EU legislation. A key vote is expected on the issue next week in the European Parliament, with the US asserting that the agreement needed to be signed before the start of July.

For its part, Caobisco, which is set to play a significant role in our World Confectionery Conference this September in London,  along with other specialist trade bodies and business associations including FoodDrinkEurope, CropLife Europe and Spirits Europe, has called on the EU to adopt the key legislation, stating that the US remains an important market for its members products.

While the vast majority of its 15,000 members are SME businesses, Caobisco’s associated companies include some of the largest confectionery and cocoa organisations in the sector, including Barry Callebaut, Ferrero and Mondelez, lending significant weight to its position in the market.

Caobisco said in a statement on the Turnberry deal, that with an annual turnover of some €60billion, and exports valued at €17 billion, maintaining those trade routes was of key importance. 

The group said: “At a time of growing economic uncertainty, preserving open and predictable transatlantic trade is essential for maintaining competitiveness, supporting investment, protecting jobs and ensuring resilient supply chains on both sides of the Atlantic.”

• The president of Caobisco, Tobias Bachmuller, is set to open our World Confectionery Conference on 10 September in London at America Square. Registration for the event is fully open at confectioneryconference.com