MEPs Approve Implementation of U.S. Trade Deal

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• The European Parliament has approved the trade agreement between the EU and the US by a large majority.
• The EU is eliminating tariffs on numerous US industrial goods and facilitating access to the European market for American agricultural and fishery products.
• Brussels reserves the right to take countermeasures if the US fails to meet its obligations or raises tariffs again.

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The European Parliament has approved the full implementation of the controversial US trade agreement. MEPs voted by a large majority to eliminate tariffs on US industrial goods and grant US seafood and agricultural products better market access.

However, this comes with a caveat: Among other things, the agreement provides that the EU’s tariff concessions can be suspended again if the US violates the terms of the agreement. This could include, for example, further tariff increases.

In addition, the US is to reduce tariffs on washing machines and other products containing steel to a maximum of 15 percent by the end of the year. If this does not happen, the EU also intends to consider imposing such tariffs. Furthermore, a fixed expiration date is to be established, among other things.

Agreement averted trade war

The provisions correspond to an agreement reached by representatives of the Parliament and the member states in May. The European Commission had agreed to the tariff deal last summer to avert a looming trade war.

At the same time, however, the European Union had to accept U.S. tariffs of up to 15 percent on most goods exported to the United States and make further concessions, such as the elimination of EU tariffs on U.S. industrial goods.

A few weeks ago, U.S. President Donald Trump set a deadline for the EU to implement the trade agreement. If the EU does not fulfill its part of the agreement by the U.S. Independence Day on July 4, the tariffs would “unfortunately rise immediately to a much higher level,” Trump announced on his platform Truth Social.

On the EU side, following Parliament’s approval, confirmation by the Council of Ministers is also required. According to the agreement between MEPs and EU member states, the regulations are to take effect no later than July 4.

Key Trading Partners

The EU and the United States maintain extensive bilateral trade and investment relations. According to EU figures, this accounts for nearly 30 percent of global trade in goods and services and 43 percent of global economic output.