The European Parliament has paved the way for the complete implementation of the customs agreement with the United States. On Tuesday, 440 members voted in favor of the deal, which was previously negotiated with the member states, while there were 151 dissenting votes and 50 abstentions. Furthermore, the duty-free import of lobster has been extended.
The proposals involve the unilateral abolition of most tariffs on industrial and agricultural products originating from the US. However, the agreement includes several safety clauses. Specifically, the regulations are set to expire on December 31, 2029. Before this date, the Commission is required to conduct a comprehensive assessment of the trade impacts on EU industry, agriculture, and small and medium-sized enterprises. It must also analyze changes in trading patterns with third countries, after which the Commission can present a legislative proposal to extend the arrangement.
Additionally, the Commission is authorized to suspend the customs preferences if the US continues to apply a tariff rate of more than 15 percent on steel and aluminum derivatives imported from the EU up until December 31, 2026. The Commission must report to the European Parliament and the Council on the customs treatment of these derivatives by December 1, 2026. Moreover, a suspension of the tariff abolition is possible even if US President Donald Trump were to increase the tariffs.
