EU Trade Committee supports trade agreement with the United States

The European Parliament’s International Trade Committee has overwhelmingly approved a compromise reached between EU governments and the European Commission on legislation needed to implement a trade deal with the United States.

According to Politico, MEPs backed the changes to the legislation by 31 votes to 6, with three abstentions.

Under the changes, the EU agreed to remove tariffs on US industrial goods and some agricultural products. This is one of the key elements of the deal, which was struck last summer at Donald Trump’s golf resort in Turnberry, Scotland.

European institutions are now rushing to complete the legislative process before July 4, when Trump has threatened to impose higher tariffs.

Tuesday’s vote comes after months of internal wrangling within the EU. Lawmakers slowed down the document after Trump threatened to annex Greenland in January, and in February the US Supreme Court struck down much of his tariff policy.

Overall, the European Parliament managed to include additional safeguards in case of new trade threats from Trump. In particular, it provides for the possibility for the European Commission to suspend US tariff concessions if Washington does not reduce tariffs on European steel and aluminium by the end of 2026.

Under the Turnberry Agreement and a subsequent joint statement, Washington committed to cap tariffs on most EU goods at 15%. However, the Trump administration has since expanded the list of goods containing steel, aluminium and copper that are subject to increased duties.

The EU institutions also added a so-called “sunset clause” that would automatically expire in December 2029, almost a year after Trump is due to leave the White House.

The updated text also includes safeguard mechanisms that would oblige the European Commission to check whether American imports pose a serious threat to European industries. If such a threat is found, this could lead to the partial or complete suspension of tariff concessions by the EU.

The bill is now due to be put to a vote by the full European Parliament on June 16. The outcome is expected to be less clear-cut, as the transatlantic trade deal remains unpopular among some liberal and left-wing MEPs.

Tags: EU, Ukraine