The European Union will likely resume negotiations on a trade deal with the United States after US President Donald Trump withdrew a tariff threat over his attempt to acquire Greenland, the president of the European Parliament said on Thursday.
“We are happy to see that escalation is off the table for now,” said president Roberta Metsola.
‘This means we can continue, at this stage, our internal discussions on the trade deal between the EU and the US, which have been suspended in the face of the imminent threat of tariffs.’
The European Parliament decided this week to suspend work on the trade agreement due to Trump’s new tariff threats.
The EU assembly has been debating legislative proposals to remove many EU import duties on US products, a key part of the agreement reached in Turnberry, Scotland, at the end of July, as well as to continue with zero tariffs on US lobsters, initially agreed with Trump in 2020. The proposals need to be approved by Parliament and EU governments.
Many parliamentarians have complained that the trade deal is unbalanced, as the EU must reduce most import duties, while the US maintains a broad 15% rate. However, they already appeared willing to accept it, albeit with conditions such as an 18-month sunset clause and measures to respond to possible increases in US imports.
Continues after advertising
The European Parliament’s Trade Committee was due to define its position in votes on January 26th and 27th.
Metsola said parliamentarians were optimistic that discussions could resume soon to get the process back on track.
