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- October 13, 202618°
- BIST10012,151-0.94%
- USD49.220.00%
- EUR55.21+0.28%
- GOLD4,198.30+0.18%
- INTEREST37.00%-1.00
- BITCOIN82,659-1.21%
- October 13, 202618°
EU finalizes approval of trade agreement with the US
The European Union has given final approval to its trade agreement with the United States, temporarily averting a transatlantic trade war, though disagreements persist.
EU ministers approve trade agreement
The European Union (EU) has given final approval to the trade agreement with the United States. Bloomberg reported that ministers of member states gave the green light on Thursday.
The agreement envisions the EU eliminating customs duties on industrial goods and some agricultural products from the US, while the US will limit tariffs on European exports to 15%.
Trump's deadline created pressure
The approval came just days before the July 4 deadline set by US President Donald Trump. Trump had threatened to impose additional tariffs if the EU did not approve the deal.
Difficult approval process
The agreement reached last summer between Trump and European Commission President Ursula von der Leyen faced numerous obstacles during the approval process. The European Parliament (EP) halted the approval procedure twice. The first time came after Trump's threats to control Greenland; the second followed a US court ruling that invalidated the Washington administration's global tariff system.
Meanwhile, the US began implementing parts of the agreement before European approval was completed. This angered Trump and increased pressure on Brussels.
Amendments added to the agreement
To address member states' concerns, the EP added two important amendments: the agreement will expire at the end of 2029, and the EU will have the right to suspend the agreement if the US violates its commitments.
Unresolved issues
Despite the approval of the agreement, significant disagreements remain between the parties. This month, Trump threatened to impose 100% tariffs on French wine and champagne, citing Paris's digital taxes.
Furthermore, differences persist over US tariffs on steel and aluminum products and EU regulations on major technology companies.
New test: aircraft subsidies
The agreement faces a new test in the coming weeks. The two sides are trying to reach an agreement on subsidies for the aircraft industry under a five-year ceasefire that expires on July 11. That ceasefire had suspended $11.5 billion in mutual retaliatory tariffs.
A European Commission spokesperson told Bloomberg that talks are ongoing with the US administration to extend the suspension of countermeasures. The goal is to prevent a re-escalation of the trade conflict between the world's two largest economic partners.
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