EU Lawmakers Back Tariff Cuts on US Imports

The European Parliament has approved lower tariffs on imports of several US products, removing the final major obstacle to implementing the trade agreement between the European Union and the United States reached last year in Turnberry, Scotland.

The measure was approved by 440 lawmakers, while 151 voted against it.

Under the agreement, tariffs on US industrial goods will be eliminated and selected American agricultural products will receive improved access to the European market. In return, Washington has imposed a 15% tariff on most EU exports. Although the framework agreement was reached in July last year, the legislation required for its implementation has only now been adopted by the EU.

The vote also extends duty-free imports of American lobsters, a concession first agreed during Donald Trump's first term in office. The move is intended to help avert a new trade dispute after Trump threatened to impose significantly higher tariffs if the EU failed to act by 4 July.

Despite the breakthrough, several trade disputes remain unresolved. Trump has again threatened to impose 100% tariffs on French wine unless Paris withdraws its digital services tax.

At the same time, the legislation includes safeguard mechanisms that would allow the EU to suspend trade concessions if the United States breaches the terms of the agreement.

(Reuters, Max)