Parliament seeks to ‘improve’ US deal, holds fire on rejection ‘bazooka’

The European Parliament’s trade chair, Bernd Lange, will push for changes to the EU’s trade concessions to the US before signing off on the first phase of Brussels’ plan to ease transatlantic tensions.

At a press conference on Thursday, Lange – who chairs Parliament’s international trade committee (INTA) – said there was “big appetite in the European Parliament to improve the legislation,” describing the Tunberry deal as merely a starting point.

“I made no proposal to reject it, nor to use any other ‘bazooka’, which are still being discussed in the European Parliament,” said the German MEP.

In late August, the Commission presented an initial proposal to implement the EU–US agreement, under which Washington would impose a 15% tariff on all EU goods, while Brussels would cut tariffs to zero on hundreds of US industrial and agricultural imports.

The ‘five S’s’

Lange summed up his response as the “five S’s”: steel, standstill, suspension, safeguard, and sunset clauses.

He opposes scrapping tariffs on steel and steel products unless the US reciprocates by lowering its own 50% duties on EU steel products.

“The US held a public consultation in September to extend the list of [EU] products containing steel and aluminium … so it might be that the story is not over,” said Lange.

The lawmaker also wants a standstill clause to stop Washington from imposing new tariffs, and a suspension mechanism allowing the EU to withdraw tariff cuts if trade tensions rise.

“Some countries in the Arab world together with the US are pushing against our climate policy, and want us to change our legislation,” Lange said, referring to a letter from Qatar and Washington seeking to kill the corporate due diligence law.

Safeguard clause

A safeguard clause, similar to the one in the recent EU–Mercosur agreement, would let the EU suspend trade benefits if zero-tariff imports hurt European farmers or industry, he said.

Lange also called for a “sunset clause” to ensure the arrangement ends if there is no prospect of a fully compliant World Trade Organization deal, stressing that the EU cannot tolerate indefinite breaches of WTO rules.

He said he expected some backing from member states for his proposals. However, the Danish presidency had already rejected a sunset clause, arguing it would not “change the reality” under the current Trump administration.

“My feeling is that in the Council there is also a clear understanding that we should not give [in to] the pressure coming from the US,” Lange said.

As lead MEP on the file, Lange’s proposals will be discussed next week in the INTA Committee, with Parliament’s position expected by January. Talks with the Council could follow soon after, potentially concluding by March or April, he added.

(adm, aw)