European Parliament approves a trade deal with US, with some conditions
Written by journalist of EUReflect Danylo Aleksandrov. BBC reports, that on Thursday the European Parliament has voted in favor of the legislation necessary to implement a trade deal between EU and the United States after several months of uncertainty because of US President Trump’s threats of tariffs.
The legislation sets tariffs for the most part of good from EU at 15% - less than 30% initially imposed bu US, but in exchange for European investment into the United States and removal of import duties imposed on industrial goods. EU lawmakers have included some safety measures to the text, such as the right to suspend the agreement if USA impose new tariffs more than 15% or if new threats to European territorial sovereignty arise. Another inclusion is the so called “Sunrise clause”. It means that the points of the agreement will come into effect only if the other side upholds its part. Som if the US doesn’t lower their tariffs, Europeans won’t honor their part of the deal.
A point of contention is Trump’s recent statement that he will not lower tariffs on global steel and aluminum, including EU. Thanks to the aforementioned clause, the deal might end on the 31st of March. 417 members of European Parliament supported the initiative, with 154 voting against and 71 abstaining. The vote came after months of threats from the United States’ leadership, as well as Trump’s intentions to annex Greenland (which is currently considered to belong to Denmark – a member of EU).
Now, before the implementation the text will have to be signed by 27 members of EU and after that a final vote is expected in April or May. EU and USA remain the largest trading partners of each other – in 2024, more than $1.9tn in goods and services were exchanged between them.
Written by journalist of EUReflect Danylo Aleksandrov.
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