EU lawmakers advance US trade deal with multiple safeguards

BRUSSELS - European Union lawmakers advanced legislation on March 26 to fulfil the bloc’s side of its trade agreement with the US, after months of uncertainty over President Donald Trump’s tariff threats and new import levy.

The EU assembly voted by 417 to 154, with 71 abstentions, in favour of the legislation although with added safeguards, reflecting concerns that Washington may not stick to the deal struck in Turnberry, Scotland, last July.

The safeguards include a potential suspension clause, among others, and lawmakers insist the US remove 50 per cent duties imposed a month after the Turnberry deal on the steel and aluminium content of products such as wind turbines and motorcycles.

European Trade Commissioner Maros Sefcovic called the vote a “crucial step”, delivering certainty for EU businesses.

The US mission to the EU said it welcomed the vote.

The European Parliament has been debating proposals to remove EU import duties on US industrial ​goods and improve access for US agricultural produce, a key part of the deal, as well as to continue zero duties for US ⁠lobsters, initially agreed with Mr Trump in 2020.

Parliament’s vote on March 26 is not the end of the process.

Representatives of Parliament and EU governments will negotiate final texts, starting on April 13, ahead of a final vote of approval by EU lawmakers not expected before June.

EU governments approved the legislation in November with more limited safeguards.

The US is the EU’s largest trading partner, with EU exports to the US rising to a record €555 billion (S$822.61 billion) in 2025.

In a debate before the vote, many parliamentarians said the trade deal was lopsided, with the EU required to cut most import duties while the US sticks to a broad rate of 15 per cent.

Mr Bernd Lange, the chair of the Parliament’s trade committee, said it was not really an agreement at all.

Belgian Social Democrat Kathleen Van Brempt called it a bad deal.

“It does not bring stability. It does not protect us from tariffs, threats and coercion,” she said.

The EU assembly had been due to vote on the legislation at the start of the year, but halted work after Mr Trump threatened to impose new tariffs on European allies that did not back his proposed acquisition of Greenland and then launched an import surcharge.

The added safeguards include a sunrise clause to make EU import duty reductions conditional on Washington honouring its side of the bargain, a sunset clause under which the tariff concessions expire on March 31, 2028, and a clause to suspend the deal if Washington breaches the terms of the deal or if there is a damaging surge of US imports. REUTERS