EU Lawmakers Split on Restarting US Trade Deal After Greenland Crisis

EU Trade Deal Negotiations

By Philip Blenkinsop

Current Status of the Trade Deal

BRUSSELS, Jan 26 (Reuters) - The European Parliament has put off until next week a decision on whether to resume work on the EU's trade deal with the United States, which it had suspended in protest at President Donald Trump's demands to acquire Greenland and threats of tariffs.

Concerns Over Tariffs and Duties

The parliament's trade committee had been due to set its position in votes on Monday and Tuesday, and the assembly's president, Roberta Metsola, said last week discussions could resume soon to get the process back on track.

Future Steps and Timelines

But German Social Democrat lawmaker Bernd Lange, who chairs the trade committee, said in a social media post on Monday that no decision had been taken. 

"European Parliament negotiating team will meet again next Wednesday, 4 February, to reassess the situation," he wrote, adding a decision needed to be made in time for the next committee meeting on February 23-24.

Swedish Liberal Karin Karlsbro said improved U.S.-EU trade relations were vital, but needed to be built on mutual respect. "The door is open, but there is no need to rush the timetable," she said in a statement.

Any move to significantly delay or freeze the deal would risk angering Trump, which could lead to higher U.S. tariffs. The Trump administration has also ruled out concessions, such as cutting tariffs on spirits or steel, until the deal is in place.

The EU assembly has been debating legislative proposals to remove many EU import duties on U.S. goods, a key part of the agreement struck in Turnberry, Scotland, at the end of July, as well as to continue zero duties for U.S. lobsters, initially agreed with Trump in 2020. 

The proposals require approval by the parliament and EU governments.

Many lawmakers had already complained that the trade deal was lopsided, with the EU required to cut most import duties while the U.S. sticks to a broad rate of 15%.

However, they had previously appeared willing to accept it, albeit with conditions, such as an 18-month sunset clause and measures to respond to possible surges of U.S. imports.

Even after the trade committee votes, final approval would likely still be a month or two away because the parliament and EU governments would first have to negotiate a common text.

(Reporting by Philip Blenkinsop and Inti Landauro; Editing by Andrew Heavens)