The European Parliament has approved its position on the tariff aspects of the Turnberry trade deal between the EU and the United States. This includes a proposal for a "preliminary agreement" according to which preferential EU tariffs on American goods will take effect only if the United States reduces its tariffs to a maximum of 15% on products of European origin with a steel content of less than 50%, Kallanish notes.
For EU products with a steel content of more than 50%, if the United States does not reduce its tariffs to a maximum of 15%, EU tariff preferences for exports of steel from the United States and derivative products will cease to apply six months after the entry into force of the regulation.
The deal, if agreed with EU member states, would eliminate most tariffs on U.
S. manufactured goods and provide preferential market access for a wide range of U.
S. seafood and agricultural products in line with commitments made in the summer of 2025 between the EU and the United States.
MEPs reinforced the proposed suspension clause, which would allow the EU to suspend preferential tariffs under certain conditions, for example, if the US imposed additional tariffs exceeding the agreed ceiling of 15%.
The members also agreed on the expiration date of the basic regulations - March 31, 2028. This can only be extended through a new legislative proposal.
MEPs will now begin negotiations with EU governments on the final form of legislation. The so-called "trilateral" negotiations should begin on April 13, Chairman of the INTA committee of the European Parliament Bernd Lange said on Friday.
The progress of the trade deal will depend on how the United States behaves. "It's obvious to me that the ball is in the United States' court right now," he added. The first step of the United States should be to reduce tariffs on so-called steel "derivatives" back to 15%, he concluded.
Author: Adam Smith Austria
Kallanish.com
