EU Parliament and member states reach internal deal on US trade agreement
European Parliament representatives and EU member states have reached an internal agreement on the implementation of the trade deal with the United States, after months of negotiations. The Cypriot presidency of the EU Council announced the breakthrough in the early hours of Wednesday morning.
Commission president Ursula von der Leyen concluded the original trade agreement with US president Donald Trump last summer in Turnberry, Scotland. The EU would implement zero tariff for American industrial goods and improved market access for certain products. In return, Trump pledged to cap the general import tariff on European goods at 15 per cent.
The European Parliament had already backed the deal's implementation in late March, but attached conditions that first had to be resolved in talks with the member states before the agreement could formally enter into force. MEPs stipulated that the agreement must be suspendable if threats are made against the territorial integrity of member states - referring to Trump's threats over Greenland - or if the United States imposes additional tariffs.
Safeguards in place
MEPs and member states have now agreed on a robust safeguard mechanism included in the deal, allowing the Commission to suspend the regulation if imports from the US "cause or threaten to cause serious injury to EU producers". Suspension can also be triggered if the US fails to meet its commitments,
In addition, the Commission will be able to suspend concessions on steel and aluminium products if the US continues to apply tariffs above 15 per cent on steel and aluminium derivatives by the end of 2026. A sunset clause is also included: the regulations will cease to apply at the end of 2029, when the next US presidential elections take place.
Trump had given the European Union until 4 July - the 250th anniversary of the United States - to formally approve the trade deal, warning that American import duties would rise sharply if the deadline is missed. Earlier this month, the US president threatened to raise tariffs on European cars to 25 per cent.
PHOTO © Brendan SMIALOWSKI / AFP
Related news
