Europe will buy more American weapons and pave way for trade deal, EU Council chief says

NATO's agreement to more than double its defense spending target has solved the main trade issue between the European Union and the U. , European Union Council President Antonio Costa told CNBC

Steps toward a deal were made this week after the U

Presented the European Commission with a new posal for a trade agreement

The former prime minister of Portugal said he hopes the 27-member state bloc can reach a trade deal with the U

Ahead of the July deadline

BRUSSELS, BELGIUM - DECEMBER 18: President of the EU Council Antonio Luis Santos da Costa talks to media (Photo by Thierry Monasse/Getty Images)Thierry Monasse | Getty Images News | Getty ImagesNATO's agreement to more than double allies' defense spending targets will rebalance Europe's trade relations with the U

And see the region buy more American weaponry, European Union Council President Antonio Costa told CNBC on Friday

The move has solved the main trade-related issue between Europe and the United States, Costa told CNBC's Silvia Amaro. "What we have decided to do is strengthen our position and to assume greater responsibilities in our own defense

Then I think we solved already the main issue, and then I think the path is paved to solve the other issues," he said

At least some part of this higher defense expenditure will be used to "buy American," according to Costa. "And of course, if we buy more American, that means then the trade relations rebalance

Then that's the reason — because I have said always that we cannot separate these two negotiations defense — [that this] was the most important issue for the United States, and [it] is already solved. "watch now19:1019:10Watch CNBC's full interview with EU Council President António CostaEurope Early EditionCosta, who served as prime minister of Portugal up until last year, reiterated Trump's previous statements that the military agreement is a "big win," adding that it effectively rebalances the burden sharing on defense

The EU is among the trade partners rushing to strike an agreement with Washington ahead of U

President Donald Trump's early July deadline for hiking so-called recical tariffs on imports from nearly all countries

Steps toward a deal were made this week after the U

Presented the European Commission with a new posal. were also buoyed by the Thursday announcement from White House Press Secretary Karoline Leavitt that the July 8 and 9 deadlines for restarting tariffs on nations are "not critical. ""Perhaps it could be ext, but that's a decision for the president to make," Leavitt said

These are the sticking points holding up a U. -EU trade dealTrump trade deadlines in July ‘not critical’: White HouseNATO wants allies to spend 5% of GDP on defense: This chart shows how hard it could beWhen asked whether the EU could reach a deal ahead of the July deadlines, Costa said the European Commission is currently assessing the White House's trade posal. "Both parties are very engaged to find a solution, and I hope that we will and that we achieve this before the ninth of July," he said.