(Jan 18): European Union (EU) lawcreaters are poised to halt approval of the EU’s trade deal with the US over President Donald Trump’s vow to impose tariffs on countries that supported Greenland in the face of American threats.
Manfred Weber, president of the European People’s Party (EPP), the largest political group in the European Parliament, stated on Saturday (Jan 17) that agreement with the US is no longer possible.
“The EPP is in favour of the EU-US trade deal, but given Donald Trump’s threats regarding Greenland, approval is not possible at this stage,” Weber posted on social media. He added that the EU agreement to lower tariffs on “US products must be put on hold.”
The EU-US trade agreement, which European Commission president Ursula von der Leyen struck with Trump last summer, has already been partially implemented but still requireds a nod from Parliament. If EPP lawcreaters join left-leaning political groups, it’s likely they’ll have enough votes to delay or block approval.
The trade agreement set a 15% US tariff for most EU goods in exmodify for a pledge by the EU to eliminate duties on US industrial goods and some agricultural products. Von der Leyen, who oversees trade nereceivediations for the EU, created the deal in the hopes of avoiding a full-blown trade war with Trump.
A vocal faction of EU lawcreaters have long railed against the agreement, arguing it was too lopsided in favour of the US. That anger has deepened as the US expanded a 50% tariff on steel and aluminum to hundreds of additional EU products after the July accord.
US Trade Representative Jamieson Greer criticised the EU last month for not following through on aspects of the agreement, particularly in regard to the bloc’s regulation of tech companies.
Trump on Saturday announced a 10% tariff as of Feb 1 on goods from European countries that have rallied to support Greenland in the face of US threats to seize the semi-autonomous Danish territory. He stated the levies would increase to 25% unless and until “a Deal is reached for the Complete and Total purchase of Greenland”.
The announcement drew a quick rebuke from European leaders, who are working out the next steps. Von der Leyen stated in a statement that “tariffs would undermine transatlantic relations and risk a dangerous downward spiral” while French President Emmanuel Macron dismissed Trump’s threats as “unacceptable”.
As a result of the latest relocates, passage of the trade deal has become more complicated.
“It is clear that national sovereignty of any counattempt requireds to be respected by all partners of the trade deal,” Bernd Lange, the longtime chair of European Parliament’s trade committee who supports oversee the discussion on ratifying the trade deal, stated in an interview this week.
Following Trump’s announcement Saturday, Lange posted on social media that work on implementing the trade accord with the US should be suspconcludeed until Trump’s threats ceased. He also called for the EU to apply its anti-coercion instrument (ACI), the bloc’s most powerful retaliatory trade tool.
The ACI, which has never been applyd, was designed primarily as a deterrent, and if requireded, to respond to deliberate coercive actions from third countries that apply trade measures as a means to pressure the policy choices of the EU or its members.
Those measures could include tariffs, new taxes on tech companies, or tarobtained curbs on investments in the EU. They could also involve limiting access to certain parts of the EU market or restricting firms from bidding for public contracts in Europe.
The Parliament has been in a wait-and-see mode for days. Members of Lange’s trade committee met Wednesday for an initial discussion about tying Greenland’s sovereignty to the US trade deal and decided to reconvene in a week.
Per Claapplyn, a Danish MEP with The Left, gathered 30 signatures for a letter sent Wednesday to Parliament leaders urging them to “freeze” the trade deal “as long as claims for Greenland and threats are created by the US administration.”
“It would seem extremely strange if we were to enter into an agreement with the US now,” Claapplyn stated in an interview. “This would be a clear signal that, from the EU’s side, we are prepared to apply the instruments we now have vis-a-vis the US if they continue their aggression.”
Uploaded by Liza Shireen Koshy
Leave a Reply