EU Lawmakers Vote to Progress US Trade Deal Legislation

EU lawmakers vote to advance US trade deal

Progress and Challenges in EU-U.S. Trade Legislation

By Philip Blenkinsop

Background and Recent Developments

BRUSSELS, March 19 (Reuters) - European Union lawmakers voted on Thursday to advance legislation related to the EU-U.S. trade deal struck last year, ending months of delay after U.S. President Donald Trump's threat of further tariffs and his new import levy.

Trade Committee Vote and Safeguards

The trade committee of the European Parliament voted overwhelmingly - by 29 to nine and one abstention - in favour of the legislation, although with multiple added safeguards, reflecting concerns that the Trump administration will not stick to its side of the deal.  

Key Proposals Under Debate

The parliament has been debating proposals to remove EU import duties on U.S. industrial ​goods and improve access for U.S. agricultural produce, a key part of the deal struck ​in Scotland last 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.

Concerns and Conditions

Lawmakers’ Criticisms

Many lawmakers have complained the trade deal is one-sided, 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 ​a sunset clause and measures to respond to possible surges in U.S. imports.

Delays and U.S. Tariff Threats

The EU assembly's trade committee had been due to vote on legislation at the start of the year, a necessary step towards approval of the deal.

However, they halted their work after Trump's threat to impose new tariffs on European allies that did not back his proposed acquisition of Greenland in January and his launch of an import surcharge in February. 

Resolution and "Sunrise Clause"

The committee subsequently decided to add a "sunrise clause" to make EU import duty reductions conditional on Washington fulfilling its side of the bargain. This helped break the deadlock.

Next Steps in the Approval Process

Thursday's vote is not the end of the process. The full EU assembly will also be asked to give its view, probably next week. Representatives of parliament and EU governments will then negotiate final texts before a final vote of approval in the European Parliament. This is unlikely before April or May.

(Reporting by Philip Blenkinsop; Editing by Alison Williams and Ros Russell)