EU Governments Pass Law to Meet Commitments of Trade Deal with US
EU Legislation Removes Import Duties on U.S. Goods
Background and Adoption of the Legislation
LUXEMBOURG, June 25 (Reuters) - European Union governments adopted on Thursday legislation to remove import duties on many U.S. goods, fulfilling the EU's side of a trade deal struck with U.S. President Donald Trump last year and avoiding renewed transatlantic trade conflict.
European Parliament Approval
• The European Parliament last week approved the legislation by 440 votes in favour to 151 against, with 50 abstentions, almost 11 months after the framework agreement was struck.
Deadline and Implementation
• Trump threatened 'much higher' tariffs unless the EU took action by July 4. After adoption by the Council, the grouping of EU governments, on Thursday the EU is on track to meet that deadline. The legislation will take effect after publication in the EU official journal.
Key Provisions of the Trade Deal
Removal of Import Duties and Preferential Access
• Under the agreement, the EU agreed to remove import duties on U.S. industrial goods and provide preferential access to U.S. farm produce. It will also extend duty-free imports of U.S. lobster, a mini-deal struck with Trump during his first term as president.
Safeguards and Expiry
Expiration Date and Suspension Clauses
• The EU legislation expires at the end of 2029 and includes multiple safeguards that would allow the EU to suspend concessions if the United States breaches the trade deal's terms.
(Reporting by Philip Blenkinsop; Editing by Alexandra Hudson)
