EU lawmakers advance US trade deal with multiple safeguards

By Philip Blenkinsop

BRUSSELS, March 26 (Reuters) - European ‌Union lawmakers advanced legislation ​on Thursday ​to fulfil the bloc's side of its trade agreement with the U.S., 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 ‌U.S. remove 50% 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 U.S. Mission to the EU said it welcomed the vote.

The European 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, as well as to continue zero duties for U.S. lobsters, initially agreed with Trump in 2020.

Parliament's vote ​on Thursday 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.

PARLIAMENTARIANS' CONCERNS

The U.S. is the EU's largest trading partner, with EU exports to the U.S. rising to a record ⁠555 billion euros ($641 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 U.S. sticks to a broad rate of 15%.

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 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 U.S. imports.

(Reporting by Philip Blenkinsop, Editing by Inti Landauro, Timothy Heritage and ‌Mark Potter)

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