European Parliament gives initial approval to EU‑US trade deal, with stronger safeguards

Brussels – The European Parliament has sent a message to Washington regarding the implementation of the EU-US agreement on tariffs: “We will not be taking any final decision without clarity.” The words of the Chair of the Committee on International Trade (INTA) and rapporteur for the European Parliament, Bernd Lange, are reflected in the position adopted today (19 March) on two proposals from the European Commission to implement certain provisions of the agreement. MEPs have added further safeguards, including a clause stipulating that tariff preferences for US-made products will come into force “only when the agreed commitments are effectively fulfilled by the US side.”

The two legislative proposals, which remove most tariffs on industrial and agricultural products from the United States, were approved by 29 votes in favor, 9 against, and 1 abstention. The INTA Committee suspended work on the dossier at the end of January, following Donald Trump’s threats against Greenland and certain Member States. “Today we have reached a broad majority behind a strong text that aims to provide a dose of stability, fairness, and firmness in our trade relationship with the United States,” Lange said. The European Parliament, he made clear, “intends to remain in the driving seat and have the last word on the application of the deal.” 

The members of the INTA Committee have introduced a series of conditions, known as the “five S’s”: a dedicated solution for steel and aluminium, a sunset clause, a standstill provision, a safeguard mechanism, and a strengthened suspension article. They have agreed on a sort of “safety net” around the agreement, tightening the safeguards provided for in the Commission’s proposal. “Any tariff imposed on the EU or one of its member states because of their foreign policy decisions is unacceptable,” according to the text that updates and strengthens the suspension clause: in the event of US tariffs, “we would immediately suspend the legislative work implementing tariff preferences on US products.” To ensure it has the final say, the INTA Committee proposes introducing a “sunrise” clause, which stipulates that tariff preferences for US products will not enter into force until the US administration has fulfilled its commitments. 

With regard to steel and aluminium, the INTA Committee’s text makes it clear that, before the regulation enters into force, the US must reduce tariffs on EU products containing less than 50% steel or aluminium from 50% to 15%. “Without maintaining a comprehensive maximum tariff of 15 per cent on exports from the European Union — including all EU steel and aluminium derivative products, which are currently being unduly over‑taxed by the United States in violation of the agreement — there will be no concessions from the European side,” warned Brando Benifei, INTA coordinator for the Group of Socialists and Democrats (S&D). 

“As we fear that the European Commission and some of our governments may yield to American pressure, the mechanism is strict and leaves no room for interpretation, as are the expiry date of the agreement we are proposing – 31 March 2028 – and the suspension clauses in the event of an attack on our territorial integrity or the imposition of additional tariffs to counter our digital regulations,” added Benifei. 

The two legislative proposals will now be put to a vote by the full Parliament at the next plenary session on 26 March, before negotiations with EU governments on the final form of the legislation can begin. “If these safeguards are not retained in the final text of the regulation, we Socialists and Democrats will not be able to vote in favour of the agreement,” the Democratic MEP warned.