By Philip Blenkinsop BRUSSELS (Reuters) -European Union governments want to put in place safeguards and a review clause in the tariff deal the bloc struck with the United States, to counter concerns
EU Members Aim for Safeguards in US Tariff Agreement
By Philip Blenkinsop
BRUSSELS (Reuters) -European Union governments want to put in place safeguards and a review clause in the tariff deal the bloc struck with the United States, to counter concerns that a possible surge of U.S. imports could damage EU industry.
Under the end-July deal, the United States is broadly imposing 15% import taxes on EU goods, while the European Union removes many of its duties on U.S. imports, a step that the European Parliament and EU governments need to approve.
Envoys from the 27-nation bloc's governments reached agreement on a common position on the legislation on Friday.
They agreed to remove import taxes on U.S. industrial goods and to create tariff-free quotas for certain seafood and agricultural produce.
However, they want the EU to have the power to suspend fully or in part the changes to duties if they result in a surge of U.S. imports that causes or threatens to cause serious damage to EU industry. The European Commission would look into possible safeguards after a request by EU members.
The EU governments also want the Commission to monitor the impact of the tariff changes on the EU market and submit a report on this by the end of 2028, which would be just after the next U.S. presidential election.
The final text of the legislation will follow negotiations between EU governments and the European Parliament.
The parliament, which is due to establish its stance in late January, is looking at proposals for similar safeguards, along with an 18-month sunset clause and a mechanism to respond if the United States deviates from the EU-U.S. agreement.
The parliament proposals also call for the United States to remove the 50% steel and aluminium tariffs it introduced in August, after the deal was struck, on 407 'derivative' products, such as wind turbines and motorcycles. If it does not, the EU would then retain its tariffs on such U.S. products until a solution is found.
(Reporting by Philip Blenkinsop; editing by Philippa Fletcher)
