TL:DR – EU Lawmakers Agree to Resume Work on EU-US Trade Deal on Wednesday
• On Wednesday, 4 October 2023, EU lawmakers agreed to resume work on enforcing the EU-US trade deal.
• The agreement, reached in July 2024, sets US tariffs on EU exports at 15%.
• German MEP Bernd Lange stated that MEPs will advance legislative proposals if the US respects EU sovereignty.
• A vote on the agreement is anticipated on 24 February, with a plenary vote possibly in March.
• Debate continues over the inclusion of a clause for suspending the deal if US threats arise.
European Parliament unfreezes EU-US trade deal
Two weeks after former US President Donald Trump dropped his tariff threats concerning Greenland, European Union lawmakers on Wednesday agreed to resume discussions on enforcing the EU-US trade deal. The agreement, struck in July 2024 by Trump and European Commission President Ursula von der Leyen, sets US tariffs at 15% on EU exports while the EU committed to cutting its tariffs on US goods to zero.
The immediate significance of this development lies in the fact that Members of the European Parliament (MEPs) had previously suspended the process due to Trump’s threats to impose tariffs if EU countries did not permit the US to acquire the Danish territory. “Trade committee members remain committed to advancing work on the two legislative proposals expeditiously,” said German MEP Bernd Lange, chair of the Parliament’s trade committee, adding that a vote on the agreement could occur on 24 February.
Discussions on Conditions of the Trade Deal
Lawmakers from various political groups engaged in heated debates behind closed doors on Wednesday, ultimately agreeing to unfreeze the deal. However, the content of the deal remains contested, with the Socialists & Democrats, Renew Europe, and the Greens advocating for a clause to suspend the deal if new threats to the Arctic island’s sovereignty arise. In contrast, the European People’s Party (EPP) seeks a swift resumption of the deal to ensure stability 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,” stated Croatian MEP Željana Zovko, the group’s negotiator. Following the meeting, she left visibly upset, comparing the situation to a performance at the Grammy Awards.
Concerns over Territorial Sovereignty
The disagreements extend to the proposed sunset clause, with the Socialists & Democrats advocating for a provision that would expire EU tariff relief after 18 months unless renewed. The EPP prefers a three-year duration before the clause takes effect. Anna Cavazzini of the Greens highlighted unresolved issues, stating, “The EU is facing repeated coercive attempts by the US, but the Member States are turning a blind eye to this reality.”
The far-right Patriots for Europe group has expressed criticism of the deal, alleging it has been poorly negotiated by the European Commission. As discussions continue, lawmakers aim to address the underlying concerns before moving forward with the trade agreement.
“