EU clears major hurdle on US tariff deal / Photo: © AFP/File
EU clears major hurdle on US tariff deal
The European Parliament gave a final sign off on Tuesday to a tariff deal with the United States as the EU seeks to close a volatile chapter of transatlantic trade relations.
It has been a long time coming.
The EU and the United States clinched the agreement in July last year, setting levies on most of the bloc's products at 15 percent, while Brussels agreed to zero tariffs for US industrial goods.
But to US President Donald Trump's chagrin, the EU had yet to fulfil its side of the bargain, after Trump's threats to Greenland and a US Supreme Court decision striking down many of his tariffs fuelled months of delay.
EU capitals have already endorsed the deal, meaning parliament's approval was the final political step before its implementation -- and puts the bloc well on track to meet Trump's July 4 deadline and defuse his threat of new tariffs on European vehicles.
The biggest forces in the parliament, including the conservative European People's Party (EPP) to which EU chief Ursula von der Leyen belongs, endorsed the agreement.
Some 440 EU lawmakers backed the deal, with 151 against and 50 MEPs abstaining during the vote in the parliament in Strasbourg.
There are now only formal steps -- a final rubber stamp by member states, expected in the coming days or weeks, and publication in the EU's official journal -- for it to take effect.
- 'Foundation for stability' -
After Trump returned to the White House last year, he unleashed a tariff blitz, with duties and levies targeting the steel, aluminium and auto sectors.
Seeking lower levies, von der Leyen scrambled to get a deal with Trump in the hope of reducing trade tensions with the EU's largest trade partner -- a relationship worth $2 trillion.
But parliament introduced a series of safeguards into the text, including an expiration date of the end of 2029 for the agreement unless it is renewed.
Another "safety net" measure gives the European Commission, in charge of EU trade policy, the power to suspend the pact if the United States fails to meet its commitments or disrupts trade and investment.
"This agreement is still far from perfect, but it is considerably stronger," trade committee head Bernd Lange said in a statement.
"The European Parliament will continue to closely monitor the implementation of this agreement," he said, adding that lawmakers would remain "vigilant" in case of any breach by the US side.
Centrist EU lawmaker Karin Karlsbro said she was proud the parliament "stood up to Trump's coercive tactics".
She warned that it "will not be the last debate on transatlantic trade, but we have laid the foundation for stability while Trump continues to create chaos".
The EPP said the green light allowed the transatlantic allies to deepen ties.
"I call on the commission to continue its effective engagement with the United States to unlock further market access, advance trade liberalisation, and support the competitiveness of European businesses," Jorgen Warborn, the EPP group spokesman on international trade, said.
J.Frank--NRZ
