EU Ministers Say Safeguard Should Be Part of US Trade Deal
The Council of the EU, which is made up of government ministers from each EU country, voted last week to eliminate customs duties on industrial products and to grant tariff rate quotas for some seafood and agricultural products. It also voted to extend duty-free treatment for U.S. lobster exports. That tariff treatment had expired in July.
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The EU and the U.S. agreed to reduce tariffs on EU goods to 15%, all inclusive, in August, in return for the EU eliminating tariffs, offering more generous TRQs and eliminating non-tariff barriers.
"This marks a major step towards implementing the joint statement, which should contribute to restoring stability and predictability in EU-US trade relations," the council wrote.
However, the Council did amend the European Commission's proposal, by strengthening a safeguard, in case EU producers are injured by a surge in U.S. exports, and by clarifying rules of origin. It also said there would need to be a report on the economic impact of the tariff concessions and other trade liberalization by the end of 2028.
The Council and the European Parliament will negotiate "with a view to reaching a final agreement on both texts."
Bernd Lange, head of the trade committee in Parliament, has said there need to be amendments for the proposal to pass (see 2511050049). He is arguing that European steel derivatives subject to the 50% tariff need to receive the 15% treatment, and that there should be a sunset clause for the deal.
He told a Euractiv reporter that a vote is expected in January, but the return to tariff-free imports of U.S. lobster could come more quickly.