European Parliament Unfreezes EU-US Trade Deal

Economic

Summary:

EU lawmakers on Wednesday agreed to resume enforcement of the EU-US trade deal. Talks will continue over how the agreement could be suspended in the future, but MEPs could vote on the deal as early as March.

Two weeks after US President Donald Trump dropped his tariff threats over Greenland, EU lawmakers on Wednesday agreed to resume work on enforcing the EU-US trade deal.

The agreement, struck in July 2024 by Trump European Commission President Ursula von der Leyen, sets US tariffs at 15% on EU exports, while the EU committed to cut its tariffs on US goods to zero.

MEPs, who must implement the deal through legislation, had suspended the process after Trump threatened several EU countries with tariffs if they refused to allow the US to acquire the Danish territory.

“Trade committee members remain committed to advancing work on the two legislative proposals expeditiously, provided the US respects the territorial integrity and sovereignty of the Union and its member states, and honours the terms of the Turnberry Deal," said German MEP Bernd Lange, chair of the Parliament's trade committee, adding that the committee could vote on the agreement on 24 February.

A plenary vote could follow in March, according to Euronews sources.

Arguing over conditions

Lawmakers from the political groups handling the file debated their next moves behind closed doors on Wednesday, and eventually a majority found in favour to unfreeze the deal, according to Lange. However, the discussion on the content of the deal was heated.

The Socialists & Democrats, Renew Europe and the Greens have all pushed for a clause that could suspend the deal in the event of new threats to the territorial sovereignty of the Arctic island, while the EPP – the largest political group on the centre-right – wants work on the deal resumed quickly to ensure certainty for businesses.

“The EPP Group seeks to restore momentum in EU-US trade relations by providing certainty for European businesses and reinforcing the transatlantic partnership,” Croatian MEP Željana Zovko, the group’s negotiator, said in a statement.

On Wednesday, she left the meeting visibly upset. "Here it's like the Grammy Awards," she said. "Some are playing stars, but then the cost is paid by the citizens."

The Socialists & Democrats favour a so-called sunset clause that would see EU tariff relief expire after 18 months unless explicitly renewed, while the EPP wants the clause to take effect only after three years.

Meanwhile, Anna Cavazzini of the Greens said that there were still outstanding issues.

"The EU is facing repeated coercive attempts by the US, but the Member States are turning a blind eye to this reality," she said. "The European Parliament must respond to this paralysis with determination."

The far-right Patriots for Europe group remains critical of the deal, which it considers badly negotiated by the Commission, according to internal sources.

Source: Euronews

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