EU's Conditional Tariff Removal Proposal: Balancing Transatlantic Trade

The European Union is considering removing tariffs on U.S. products, contingent upon concessions from the United States. The proposal includes a safeguard clause and timeframe limitations. A decision is expected following votes in the European Parliament and negotiations with the EU Commission and governments.

The European Union may remove tariffs on numerous U.S. products, but with conditions attached, according to a senior EU lawmaker. Concessions from Washington are necessary, with added safeguard and sunset clauses to any future legislation.

The European Commission's proposal is part of a broader EU-U.S. tariff agreement, which still needs European Parliament and EU government approval. The plan includes a reciprocal arrangement, with the U.S. to enforce 15% tariffs on goods from the EU. Bernd Lange, the European Parliament's chief overseer on tariff reductions, outlined five necessary conditions in a report ahead of votes in the EU assembly.

Lange highlighted criticisms of the current deal and emphasized the need for legislative improvement. He insisted the U.S. must eliminate 50% tariffs on EU products like wind turbines. Until a favorable deal emerges, Lange's proposal would maintain existing EU tariffs. A proposed 18-month tariff removal period could extend based on impact assessment and U.S. actions toward a balanced agreement.

(With inputs from agencies.)