EU reaches agreement to implement trade deal with US

In the early hours of May 20th, lawmakers from the European Union (EU) and its member states reached an agreement to implement a trade deal with the United States, amid threats from President Donald Trump to impose new tariffs if the agreement was not implemented by July 4th.

This information was confirmed on May 20th by Zeljana Zovko, head of the European People's Party (EPP) negotiating team in the European Parliament, following talks between EU and US representatives on the legal framework for the trade agreement.

The EU reached an agreement with the US last July, stipulating a 15% tariff rate on most European goods. However, what displeased Mr. Trump was that the EU had yet to fulfill its commitment to eliminate tariffs on most imports from the US in exchange for this preferential treatment. Mr. Trump warned that without this, the EU could face "much higher" tariffs. He even stated he would increase tariffs on European cars and trucks from the current 15% to 25%.

In a statement on social media platform X, regarding the agreement reached on the implementation of the trade deal with the US, Ms. Zovko said that Europe had avoided the risk of escalating trade tensions that could harm businesses, investments and millions of jobs on both sides of the Atlantic.

European lawmakers were under considerable pressure to abandon certain amendments that the U.S. considered unacceptable. Among these was the suspension clause, which allowed the EU to cancel preferential tariff conditions for U.S. exporters if the U.S. violated the agreement.

The final text, when adopted, empowered the European Commission (EC) to activate a suspension mechanism if the US failed to meet its commitments or disrupted trade and investment with the EU, including discriminatory actions or actions targeting EU economic entities. The agreement also provided the EU with tools to address surges in US imports that caused or threatened to cause significant damage to domestic producers.

Nevertheless, the European Parliament also accepted concessions and eased some of its demands. Notably, the final text granted the US until the end of this year to abolish the surcharges above 15% on steel components, instead of insisting on this as a prerequisite as before.

Another contentious issue is the so-called "dawn" and "sunset" clauses. Under these clauses, the EU's obligations under the agreement would come into effect as soon as the US fully implemented its commitments, and the agreement would expire in 2028 unless extended. According to an announcement from the European Parliament, the "dawn" clause has been completely removed, while the deadline for the "sunset" clause has been postponed to the end of 2029.

According to European media, the agreement was reached after a meeting that lasted until the night of May 19 in Strasbourg, France, concerning the implementation of tariff provisions in the EU-US joint trade declaration signed nearly a year ago.

Source: https://vtv.vn/eu-dat-thoa-thuan-thuc-thi-hiep-dinh-thuong-mai-voi-my-100260520105217382.htm