The European Parliament has prepared a joint opinion on a trade agreement with the USA after calming the conflict around Greenland. The agreement includes duty-free entry of American goods into the EU, but in exchange it demands stricter guarantees and protection mechanisms for European interests.
The representatives of the political groups of the European Parliament (EP) on Tuesday agreed on a common position on the trade agreement between the European Union and the United States. The move follows an easing of tensions over the dispute over the future of Greenland, TASR reports, according to reports from Euractiv.com, Euronews and Politico.
In short:
- The EP reached an agreement on a common position on the trade agreement
- The agreement allows duty-free imports of American industrial goods
- The EP requests protection mechanisms in case of damage to domestic producers
The vote on the position on the agreement should take place in the EP Committee on International Trade (INTA) on February 24. If approved, the vote would be moved to the March plenary session of the EP, which would be followed by difficult negotiations with member states in the Council of the EU.
Trade agreement with the USA
The agreement from July last year, which was concluded in Turnberry, Scotland, by the President of the European Commission, Ursula von der Leyen, and the US President, Donald Trump, provides for the duty-free import of US industrial goods into the EU. In return, the United States has pledged to apply a blanket tariff, capped at 15 percent, to most EU imports. The agreement requires the consent of the EP.
The European Parliament suspended approval of the trade deal in January after the US president’s comments on Greenland and the announcement of plans to impose tariffs on European countries that did not agree to his intention to acquire Greenland. After easing the tension, the MEPs tasked with working on the document on the final details of the opinion agreed on Tuesday behind closed doors.
Key requirements of the EP
INTA chairman Bernd Lange of the Socialists and Democrats group said most political factions supported his key demands. These include a safeguard mechanism similar to the Mercosur deal, which would allow tariffs to be reimposed if domestic producers are harmed, as well as a clause allowing the deal to be suspended if the EU’s territorial sovereignty is threatened. The criteria for its application have not yet been specified. Part of the compromise also includes strengthening the EP’s role in overseeing the implementation of the agreement.
According to Lange, the agreement with the US would expire in March 2028 under the so-called sunset clause, which sets its duration at 24 months. On steel, Lange said the political groups agreed that the United States had breached the Scotland deal by imposing tariffs on other steel products from the EU. MEPs therefore agreed that the EU should automatically impose tariffs on steel products from the US if Washington does not lift its measures within the next six months.
