The US and the European Union will work towards zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods. The EU will buy billions of dollars worth of American exports, including soya beans and natural gas, and work to reform international trade rules.

Both sides will resolve the steel and aluminum tariffs imposed by the US which started the dispute. The EU-US negotiations will be led by an executive working group aiming to make trade more fair and reciprocal. The US and the EU, which have a trillion dollar bilateral trade relationship, will also work together to reform the World Trade Organisation and cut down on unfair trade practices.

However, all this is the resumption of some basic dialogue. Individual items like soybeans and liquefied natural gas are not very significant. It is unlikely the EU would agree to a major revision of trade terms without steel and aluminium being taken off the table first.

But to the extent they’ve agreed to continue to talk and take a joint approach to Chinese trade practices, it’s significant. This puts everything on a slightly more stable footing. The US also remains on the edge of a full-on trade war with China and has yet to step back from conflicts with Mexico and Canada.