EU Council, European Parliament Strike Deal on U.S. Trade Pact Rules

(MENAFN) The Council of the EU and the European Parliament struck a provisional deal Wednesday on a pair of regulations designed to give legal force to the tariff provisions of last year's landmark EU-US trade agreement, racing to meet a deadline set by President Donald Trump.

"The EU and the United States share the world's largest and most integrated economic relationship," Michael Damianos, the Greek Cypriot Administration's energy, commerce and industry minister, said in a statement, adding that the agreement ensures "robust safeguards to be able to protect European interests, businesses and workers."

The broader framework traces back to a deal concluded in Scotland last July, under which the EU committed to eliminating import duties on American industrial goods and opening preferential access channels for U.S. agricultural and seafood products. In return, Washington agreed to cap tariffs on most EU exports at 15 percent.

The stakes are considerable. Trump has threatened to impose far steeper tariffs on European goods — including automobiles — if Brussels fails to deliver on its commitments by July 4, having previously floated a 25 percent levy on EU car imports specifically.

Wednesday's agreement translates those broad commitments into concrete legislative action through two distinct regulations. The first eliminates residual customs duties on U.S. industrial goods and establishes preferential access arrangements, including tariff rate quotas and reduced duties covering select seafood and non-sensitive farm products. The second extends an existing suspension of duties on lobster imports, including processed variants.

Critically, the package incorporates a safeguard mechanism empowering the EU to act should a significant surge in American imports threaten to undercut domestic producers. A parallel provision grants the European Commission authority to suspend the regulation entirely if Washington fails to honour its commitments under the joint statement or takes discriminatory action against EU operators.

A sunset clause embedded in the text sets an automatic expiry date of the end of 2029, unless lawmakers choose to extend the regulations. The deal also mandates regular economic impact assessments, with the Commission required to track trade flows and evaluate the measures' effects — including their consequences for small and medium-sized enterprises.

European Commission President Ursula von der Leyen hailed the breakthrough on U.S. social media company X. "A deal is a deal, and the EU honors its commitments," she said, urging co-legislators to "move swiftly and finalize the process."

"Together, we can ensure stable, predictable, balanced, and mutually beneficial transatlantic trade," von der Leyen added.

The regulations must still clear formal adoption procedures in both institutions before they can enter into force, following publication in the Official Journal.

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