The European Union and Australia have concluded talks on a free trade deal that
could boost export volumes by as much as one third, European Commission
President Ursula von der Leyen announced in Canberra.
Von der Leyen shook hands on the agreement with Prime Minister Anthony Albanese
Tuesday, on the second of her three-day visit to Australia — finally sealing the
accord after a previous attempt collapsed amid acrimony in 2023.
The Commission president told the Australian parliament the trade deal was
necessary to build resilience to economic shocks.
“None of us is immune to the shocks, both geopolitical and economic, that the
war in Iran brings to our populations,” von der Leyen said.
Von der Leyen told the special parliamentary sitting of MPs and senators — she
was the first woman to address a joint sitting in Australian history — that the
deal would send a message that “when it comes to trade, Europe is open for
business.”
“We are rearming. We are decarbonizing. We are preparing. We are becoming an
independent Europe. And this means a more outward Europe. And this is why I am
here today. Because showing up matters,” she said.
With U.S. President Donald Trump slamming tariffs on allies globally, Brussels
and Canberra rekindled their negotiations last year.
EU Trade Commissioner Maroš Šefčovič, who was in Canberra for the signing of the
free-trade deal, stressed both countries’ commitment to a rules-based world
order when he briefed journalists on Monday ahead of the final talks.
“We are sending a strong signal that we prefer a low tariff — or in this case:
no tariffs — and that we want to work on rules-based mechanisms,” Šefčovič said.
Sensitive market access for Australian beef and sheep meat, plus sugar, rice and
some dairy was the last point of discussion.
The two sides are believed to have agreed that Australia will be able to export
between 30,000 and 35,000 tonnes of beef to Europe a year, up from the current
3,389 tons. Brussels had held firm to 30,000 metric tons during talks in recent
weeks.
In an earlier joint press conference, Albanese also suggested that Australia had
extracted some concessions from the EU on the issue of geographic indicators,
which could enable Australian producers to continue using names including feta,
halloumi and Parmesan.
The issue was politically sensitive, with Australia’s European communities
arguing they should be allowed to continue producing their food products under
their original names.
“Whether it’s Greeks coming here and creating feta, or Italians coming and doing
Parmesan [cheese], or people from Eastern Europe doing Kransky sausages … It’s a
connection with Europe. It’s part of our strength,” Albanese said.
Australia will agree to protect the names of 165 European food products and 237
spirits. The two sides also agreed to modernize an existing wine agreement,
which covers 50 new ones and includes — in a win for Brussels — prosecco as
well.
Coming just two months after the EU signed a deal with the Latin-American
Mercosur bloc — also a major beef producer — the Australian agreement is meant
to deliver benefits for farmers, Šefčovič said.
“I believe that we are bringing very good news to our farmers,” he said, arguing
that wine, sparkling wine, chocolate, sugar, confectionery, ice cream, some
fruits and vegetables and many processed agricultural products will all “go down
to zero from Day 1.”
Cheeses, which are more sensitive for the Australians, will see tariffs phased
out in three years. The trade chief also underlined EU agrifood exports to
Australia already enjoy a surplus of €2.3 billion.
EU exports to Australia totalled €37 billion in goods and €28 billion in
services in 2024, with the deal set to eliminate tariffs on almost all EU goods
and many services. The agreement could boost that by one third in 10 years, the
Commission estimates.
A major win for the EU will be easier access to Australia’s natural resource
wealth and incentives for European investments for Australian mining and
refining. “Australia has almost all the critical minerals we need,” Šefčovič
said.
Speaking of the EU’s need for critical minerals, von der Leyen told lawmakers
that a new partnership with Australia would be “crucial” to the EU, which ran
the risk of becoming over-dependent on Chinese supplies. “That is precisely why
we need each other,” she said.
Brussels also won a pledge from Australia to raise the threshold for its luxury
car tax by almost 50 percent. Canberra currently charges a 33 percent levy on
foreign-made cars above A$80,000 (or A$92,000 for a fuel-efficient one).
Šefčovič said that will rise to A$120,000.
Koen Verhelst reported from Brussels; James Panichi reported from Melbourne.
Tag - Agriculture and Food
BRUSSELS — America’s ambassador to the EU called on the European Parliament to
back the trade deal struck with President Donald Trump, arguing it would unlock
deeper transtlantic cooperation on energy, tech and AI.
Speaking to POLITICO on Monday, Andrew Puzder cautioned that it would be a
mistake to allow a further delay of the deal reached last July at Trump’s
Turnberry golf resort in Scotland, but has still to be implemented on by the EU
side.
“All of the signals are good, but you never know. We’re hopeful, but we want to
be careful and make sure that we don’t take anything for granted,” Puzder said
in an interview at the U.S. mission in Brussels.
“It’s in the best interest of the European Union and the United States that it
passes,” he added. “Some people might think that politically, it might give them
an advantage to vote against. I hope that’s not the case. But economically, it’d
be malpractice not to vote for this in the EU.”
Puzder highlighted the importance of the EU’s commitment to spend $750 billion
on U.S. energy under the Turnberry deal.
“Europe’s going to need that energy,” he said. “So we need to cut back on the
regulatory restrictions to our shipping them the energy and also the regulatory
restrictions that make that energy more expensive once it gets here.”
IT’S BEEN LONG ENOUGH
Puzder, a former fast food executive nominated by Trump, started the role last
September and made an early impression in Brussels with his plain speaking. He
told POLITICO in December that the EU should stop trying to be the world’s
regulator and get on instead with being one of its innovators.
His latest remarks came amid mounting U.S. frustration over the EU’s slow pace
in keeping its side of the bargain, under which it would scrap import duties on
U.S. industrial goods.
The enabling legislation is now up for a plenary vote in the European Parliament
on Thursday. If it passes, talks between EU lawmakers, governments and the
Commission would then begin on finally implementing the tariff changes.
“We’re anxious to get this through the process. We understood they had to go
through a process, but it’s been long enough. And hopefully we’ll get through it
on Thursday and we can both move on to more economically beneficial endeavors,”
Puzder stressed.
Trade lawmakers backed amendments at the committee stage to strengthen the EU’s
protections in case Washington doesn’t respect its side of the deal.
They for instance introduced a suspension clause if Trump threatens the EU’s
territorial sovereignty, as he did earlier this year when he pushed to annex
Greenland. MEPs also added another provision that foresees that the deal would
expire in March 2028.
Puzder declined to speculate on whether the deal could unravel altogether if the
U.S. president were to launch any renewed threats.
“I hate to prejudge where this is going to go,” he said. “What everybody’s been
saying on both sides is a deal is a deal. We had a deal; hopefully we still have
a deal.”
The ambassador stressed there had been a “very good two-way communication”
between Trump’s team of Trade Representative Jamieson Greer and Commerce
Secretary Howard Lutnick, and the European Commission, as well as with Bernd
Lange, who chairs the European Parliament’s Trade Committee.
“I’ve also had a number of meetings with Bernd Lange and members of parliament
on these issues. So the communication has been very good and very open
throughout this process,” Puzder said.
BRUSSELS — The Trump administration has reassured the EU’s top trade lawmaker
that it plans to shorten a list of items containing steel that are subject to
high U.S. tariffs, in a concession that could finally persuade the European
Parliament to back last year’s transatlantic trade deal.
The offer came in a call between U.S. Trade Representative Jamieson Greer with
Bernd Lange, the chair of the European Parliament’s Trade Committee. It has
helped win the support of Lange’s fellow socialists, enabling a key committee
vote to go ahead on Thursday.
But the fix is not yet fully in, with caucus leaders still to debate exactly
when to schedule a final plenary vote on the accord reached at President Donald
Trump’s Turnberry golf club in Scotland last July.
One sticking point has been the subsequent addition by Washington of hundreds of
items that contain steel — from cranes to furniture — to a list of products
subject to a 50 percent U.S. tariff. That, in the view of the Europeans,
violates the spirit of the Turnberry accord.
In their call last Saturday, Greer assured Lange that many of these items would
go, said the German MEP, who is also steering the enabling legislation on the
deal.
“Not everything, but a lot of them,” Lange told POLITICO’s Morning Trade
newsletter, saying that there was “some movement” on that front.
The enabling legislation, which would remove tariffs on U.S. industrial goods,
has been stalled for weeks in the EU chamber, as lawmakers balked at approving a
deal following the U.S. Supreme Court’s decision last month to strike down
President Donald Trump’s original tariffs.
The Turnberry deal had set an “all-inclusive” tariff of 15 percent on most
goods. Trump quickly replaced that with a temporary 10 percent global duty.
With Trump’s threats to annex Greenland, cut off all trade with Spain, and his
military campaign against Iran further undermining any vestigial confidence on
the part of EU lawmakers that he will abide by his commitments, the path to
final approval of the Turnberry accord is both rocky and narrow.
NOT THE END OF THE ROAD
The next hurdle is holding a final plenary vote on the Turnberry deal, with
political groups in the European Parliament still divided.
Lange’s Socialists & Democrats, the Left, Greens and Renew are in favor of
scheduling it in April, arguing they still require clarity from Washington. The
center-right, pro-business European People’s Party (EPP) is pushing to hold it
next week, as currently scheduled.
A decision is expected this week. Political group chairs representing a majority
of MEPs would be needed to change the plenary agenda.
“We need to finish this in March because then we would have much more certainty
for everything. We have promises from the White House on steel and aluminum
derivatives,” said Željana Zovko, the EPP top negotiator on the file.
Lange is meanwhile due to fly — after the Trade Committee vote on Thursday — to
Washington and is expected to meet with Greer.
Only after the text is approved by the plenary can the European Parliament enter
negotiations with EU capitals and the European Commission on a compromise to
finally implement the deal.
BEYOND EU
People close to the White House say officials have spent weeks exploring ways to
streamline how the U.S. steel tariffs apply to downstream products that hit the
EU and other trading partners, following industry pushback after the list of
steel and aluminum derivatives expanded to cover hundreds of items last year.
The exchange between Greer and Lange marks the clearest signal yet that the
administration may adjust its approach to derivatives tariffs — changes that
could extend well beyond the EU.
But the Trump administration has not publicly confirmed any changes, or
clarified what that plan would entail.
“We are always examining ways to ensure our sectoral tariffs are most
effectively safeguarding our country’s national and economic security, but
unless announced by the Administration, discussion about tariff or derivative
adjustments is baseless speculation,” said a White House official.
Camille Gijs reported from Brussels and Ari Hawkins reported from Washington.
Max Griera contributed to this report.
BRUSSELS — The European Union and Australia are expected to conclude talks on a
long-awaited trade deal early next week, with Commission President Ursula von
der Leyen on Wednesday announcing she would visit from March 23-25.
Von der Leyen will meet Australian Prime Minister Anthony Albanese in Canberra,
according to a Commission statement. Trade Commissioner Maroš Šefčovič is also
expected to join the trip, although planning might yet change due to flight
disruptions in the Middle East.
Albanese confirmed the visit, saying in a statement that he would meet both von
der Leyen and Šefčovič on March 24.
Brussels and Canberra relaunched trade negotiations after Donald Trump’s return
to the White House last year. They had collapsed amid acrimony at the end of
2023 amid disagreements over quotas on beef and lamb. The breakthrough comes as
the EU looks to get closer to the Pacific-centered CPTPP trade bloc through its
deepening bonds with Australia.
In a letter to EU leaders shared Monday, von der Leyen said the EU and Australia
were in “the final stretch towards concluding” their trade agreement.
“In addition to removing trade barriers, it will also facilitate access to
critical raw materials — such as lithium, cobalt, rare earth elements, and
hydrogen — and strengthen Europe’s presence in one of the world’s most dynamic
economic regions,” she wrote, as part of a list on the Commission’s efforts to
boost competitiveness.
Negotiators had grappled in the home stretch to close the gap on access for
Australian beef and lamb to the European market; EU trade protections on
specialty foods; critical minerals; and an Australian tax on luxury cars.
Canberra and Brussels are also looking to seal a security and defense
partnership, which is finalized.
The EU top diplomat Kaja Kallas, who would be signing the defense deal, known as
Security and Defense Partnership, is however not expected to be part of the
trip. The pace would come on the heels of similar partnerships signed with the
U.K., Canada and most recently India.
Speaking last week at at the annual gathering of diplomats with the External
Action Service, the EU’s diplomatic body, Kallas said that the deal was coming
as she announced that “later this week, I will sign the tenth [SDP] with
Australia and subsequent ones with Iceland and Ghana in the coming days.”
James Panichi, Zoya Sheftalovich, Sebastian Starcevic and Nette Nöstlinger
contributed reporting.
The European Commission is set to reject calls for an EU-wide ban on fur
farming, opting instead to propose stricter animal-welfare standards for the
sector, according to an internal draft communication seen by POLITICO.
The undated document, setting out Brussels’ long-awaited response to the “Fur
Free Europe” European Citizens’ Initiative, indicates the Commission believes
species-specific welfare rules, rather than prohibition, represent the “most
appropriate follow-up” to the campaign backed by more than 1.5 million EU
citizens.
Animal Welfare Commissioner Olivér Várhelyi is expected to steer the file
through the final stages of internal consultation in the coming days, as the
executive races to meet its self-imposed deadline to outline next steps by the
end of March.
The draft marks a significant setback for campaigners and several member
countries that had hoped the Commission would seize the initiative to phase out
fur farming across the bloc. The citizens’ petition, one of the largest ever
submitted under the EU’s participatory mechanism, triggered a formal legal
obligation for Brussels to assess possible legislative action.
Instead, the Commission’s preliminary conclusion is that outright bans would
carry “significant economic impacts” for the remaining fur-producing regions
while failing to achieve the intended welfare gains if production simply shifts
to third countries.
The draft does not spell out what stricter welfare rules would look like in
practice. The Commission would aim to propose legislation setting EU-wide
standards for mink, foxes, raccoon dogs and chinchillas by the end of 2027.
The document cites changing consumer attitudes as part of its rationale for the
fur trade to continue. It says that buyers who continue to purchase fur
“increasingly place importance” on how animals are treated and on broader
sustainability concerns, suggesting that tougher and more transparent welfare
rules could help shape remaining demand.
But the standards-first approach has not been without resistance inside the
Commission. The plan follows weeks of internal wrangling in Brussels, with some
senior officials pushing to explore a ban. People familiar with the discussions
said the cabinet of Executive Vice President Teresa Ribera ultimately accepted
the standards-based route, while seeking a clearer and potentially faster
legislative timeline.
The decision could still face political headwinds. Several governments are
pressing the Commission for clarity on its intentions, and diplomats say the
issue is likely to resurface at upcoming meetings of EU agriculture ministers.
The Commission’s stance contrasts with the findings of the European Food Safety
Authority, which warned in a 2025 scientific opinion that the cage-based
production systems used in fur farming lead to major welfare problems for
animals. Many of these cannot be substantially mitigated without an overhaul of
the current system, EFSA concluded.
The document also underscores how sharply the sector has already declined. Fewer
than 1,000 fur farms remained active across the EU in 2024, employing roughly
2,000 people, with production increasingly concentrated in a limited number of
member states, including Finland, Greece and Spain.
Hungary is pressing the European Union to suspend tariffs and extra duties on
fertilizer imports from Russia and Belarus as the war in Iran threatens to drive
up global food prices.
Such a move would boost a key source of revenue in funding Moscow’s war of
aggression against Ukraine.
In a letter to European commissioners on Monday, Hungarian Agriculture Minister
István Nagy warned that rising global fertilizer prices and supply uncertainty
exacerbated by the war in Iran risk squeezing EU farmers and pushing up food
costs.
He called for the levies on Russian and Belarusian products to be temporarily
reduced to zero, warning that Hungary could face lower crop yields if access to
cheaper imports remains restricted. The country produces only nitrogen
fertilizers domestically and relies on foreign supplies of phosphorus and
potash.
The EU tightened duties on fertilizers from Russia and Belarus in 2025 after
imports rose in the years following Moscow’s full-scale invasion of Ukraine. The
increase raised concern that Russia was redirecting gas exports hit by sanctions
into fertilizer production to sustain export revenues.
Russian shipments to the EU were still worth around €2 billion last year, but
volumes fell sharply in early 2026 as the new levies began to bite.
Iran’s effective blockage of the Strait of Hormuz is driving up the cost of
fertilizer by tying up supplies of both the fuel and raw materials needed to
produce it. Budapest is also pushing the EU to relax its ban on Russian gas to
ease price pressures — an idea roundly rejected by Brussels.
Spain on Monday put forward Agriculture Minister Luis Planas as a candidate for
the top job at the U.N.’s Food and Agriculture Organization (FAO).
Spanish Foreign Minister José Manuel Albares announced the decision during his
doorstep at the Foreign Council Affairs in Brussels.
“It is a Spanish candidacy, but one that has a European vocation and also
reflects Spain’s belief in multilateralism and the United Nations, at a time
when food security is absolutely fundamental,” Albares said.
Planas becomes a third European candidate for the post after EU agriculture
ministers agreed at this month’s Brussels summit they should try to unite behind
a single European contender.
Italy has formally nominated former farm minister and current FAO Deputy
Director-General Maurizio Martina, and Ireland backed Phil Hogan, the former EU
griculture and trade commissioner.
Currently leading the Rome-based U.N. agency is Qu Dongyu, a Chinese politician
whose term will end in mid-2027. Formal candidacies to succeed him must be filed
by the end of the year.
BRUSSELS — The European Union’s anti-deforestation law will put United States
producers off exporting to the European market, harming EU competitiveness, a
senior official with the U.S. Department of Agriculture told reporters in
Brussels Friday.
The law, also called EUDR, is “going to discourage us from looking at the
European market” and from “paying attention to any European rules [linked to
deforestation],” the official said. The law as it stands would affect $9 billion
of U.S. trade to the EU annually, added the official, who spoke to journalists
on condition that he was not named.
A delegation of U.S. government representatives is finishing a tour of EU
capitals — including Madrid, Rome, Paris, Berlin and Brussels — to lobby
governments to simplify the EUDR ahead of an upcoming review of the rules next
month.
One example of a sector that could be affected is livestock farming, the
official said, arguing these farmers depend on soybeans to feed their animals,
and Europe does not produce enough protein feed.
“It needs to import from countries that are better at it, like us,” he said,
warning that the U.S. stopping that export “will drive up their costs, hurt
their competitiveness.”
The EU’s anti-deforestation law requires that companies police their supply
chains to ensure that any commodities they use, such as palm oil, beef or
coffee, have not contributed to deforestation. After complaints from industry
groups and trade partners, EU institutions in December agreed to put off
implementation of the law by a year — until Dec. 2026 — and mandated the
Commission to present a review of the rules by April.
“It’s particularly difficult for us because these [compliance] costs will be
borne by our producers,” said the official. U.S. farmers also don’t want to
share information on their farms with foreign governments, he said.
Washington’s main qualms with the law include the fact that there’s no category
of “negligible” risk in the EU’s ranking of countries by risk of deforestation.
The U.S. — like all EU member countries as well as China, Canada, the Democratic
Republic of the Congo, Ghana, Kenya, Vietnam and others — has been labeled “low
risk” under the EU’s deforestation classification system.
Members of the European Parliament in the center-right European People’s Party
have also backed the introduction of a “no risk” category, “for countries with
stable or expanding forest areas.”
The senior official also complained about a stipulation in the law that if the
level of deforestation in any country exceeds 70,000 hectares annually, that
country cannot be considered “low risk.” That standard “just doesn’t work for
us,” they said. “It’s not fair.”
Representatives from the European Commission are meeting with members of the
delegation on Friday “at technical level” to discuss the law, a spokesperson for
the European Commission confirmed to POLITICO. European Environment Commissioner
Jessika Roswall told reporters in January that there would be no new legislative
proposal come April, saying businesses need “predictability.”
A 2024 report from the U.S. Congressional Research Service estimated that, in
2023, U.S. exports of the seven commodities under the EUDR accounted for
approximately 3 percent of the value of U.S. exports to the EU, “so overall the
EUDR may not significantly affect U.S. trade.”
European Environment Commissioner Jessika Roswall told reporters in January that
there would be no new legislative proposal come April, saying businesses need
“predictability.” | Gabriel Luengas/Europa Press via Getty Images
Still, the authors wrote, the law could affect U.S. producers of specific
commodities covered by the law. In 2023, the highest value of covered
commodities exported to the EU from the U.S. were wood and wood products ($4.5
billion), soybeans ($4 billion), rubber ($1.1 billion), and cattle, such as beef
and related products ($409 million).
Environmental groups are calling on EU governments and the Commission to stick
by the EUDR and keep the rules intact.
“Misleading and self-serving foreign pressure on the EU should not distract
policy-makers from staying focused on facts,” said Anke Schulmeister-Oldenhove,
manager for forests at WWF EU, in an emailed statement. “Every year the EUDR is
postponed results in the loss of nearly 50 million trees and the release of 16.8
million tonnes of CO₂ into the atmosphere.”
STRASBOURG — European and American officials are scrambling to avoid a return to
their transatlantic trade war, amid increasing frustration in Washington over
the EU’s failure to implement the transatlantic trade deal they agreed last
summer.
A trio of senior European lawmakers will travel to Washington next week, hoping
to meet U.S. Trade Representative Jamieson Greer, who accuses the EU of
implementing “zero percent” of the trade accord reached at President Donald
Trump’s Turnberry golf resort in Scotland last July 27.
The mission to the U.S. comes amid of flurry of diplomatic contacts between EU
and U.S. officials ahead of a high-stakes vote by European lawmakers expected on
March 26 that will determine whether Brussels can implement last year’s accord.
That vote is at risk of being delayed, yet again, after a series of previous
hold ups. U.S. patience is wearing thin, raising the prospect that the tariff
conflict could flare up again.
“The EU has done approximately zero percent of what they were supposed to do for
their trade deal with us. We quickly after the Turnberry deal came into
compliance with that deal,” Greer said during a press call on Wednesday.
“The European Union has had their legislation for their tariffs pending for
many, many, many, many months,” he added.
Top EU parliamentary negotiators will meet on March 17 to decide whether to push
back their vote again.
The Turnberry agreement is widely seen in Europe as a one-sided pact. In it, the
EU accepted a 15 percent U.S. tariff on most exports, while itself pledging to
scrap all tariffs on U.S. industrial goods. Many EU lawmakers fear that Trump
could yet renege on the deal to make more tariff threats, as he has done over
Greenland and Spain.
In the Parliament, the center-right European People’s Party — the political
family of European Commission President Ursula von der Leyen and German
Chancellor Friedrich Merz — wants to see the deal approved to avoid retaliation
by Trump and bring stability to businesses.
The Socialists & Democrats, liberals and Greens have voted against moving
forward, however, after balking at the U.S. president’s latest tariff menaces
against Spain, his strikes on Iran and his threats to stage a “friendly
takeover” of Cuba.
CRACKS IN TRUST
Treasury Secretary Scott Bessent has sought to reassure the Europeans that the
U.S. will stick by the deal. Yet skepticism persists.
“How can we get clarity with Trump [who] doesn’t respect the deals? I think
that, for now, what we would need is some public statement on the willingness to
respect the deal,” Brando Benifei, an Italian Socialist who is the Parliament’s
point person for relations with the U.S., said on Tuesday.
Treasury Secretary Scott Bessent has sought to reassure the Europeans that the
U.S. will stick by the deal. | Brendan Smialowski/AFP via Getty Images
Benifei will be one of the three MEPs traveling to meet Greer. The others are
Bernd Lange, the German Social Democrat who chairs the European Parliament’s
trade committee, and Polish center-right lawmaker Michał Szczerba, who sits on
the foreign and security committees.
They hope to meet Greer on March 20, but the EU lawmakers could already have
delayed the vote by then. “I hope that we can find some common ground,” Lange
said.
Karin Karlsbro, a Swedish liberal who is skeptical on the trade pact, is also
expected to meet with representatives of the U.S. mission to the EU, her office
said.
And Željana Zovko, the top negotiator on the file from the EPP, the biggest
grouping in Parliament, will meet with U.S. Ambassador Andrew Puzder on Monday,
she told POLITICO.
Despite the worries from the U.S. side, Anna Cavazzini, the lead lawmaker on the
file in the Greens group who is spearheading opposition to the deal, said she
had not been contacted by the Americans.
UNRELIABLE PARTNER
Despite Bessent’s pledge on the Turnberry pact, the EU remains wary over what
Trump will do next. The U.S. has, only this week, launched new investigations
into unfair trade practices that could trigger more tariffs against the EU.
That has redoubled concerns in Brussels that Trump plans to plow on with his
aggressive trade agenda against Europe, undeterred by a Supreme Court ruling
last month that substantially overturned his original tariff agenda.
On top of the latest investigations, people close to the file say the White
House will not shy away from imposing tariffs on national security grounds, such
as Section 232 of the Trade Expansion Act of 1962.
Washington’s double-sided approach is not lost on European lawmakers.
“‘We’ll stick to the deal.’ And less than 24 hours later, they are already
threatening us with new tariffs. It is impossible to work with the Trump
administration like this,” the Socialist group’s vice president for trade
policy, Kathleen Van Brempt, said in a post on X Thursday.
The EPP’s top trade lawmaker, Jörgen Warborn, last week pitched a “sunrise
clause,” meaning the deal would only finally kick in if Washington upheld its
side of the bargain.
“That would give clarity because what the sunrise clause is doing, it’s making
sure that the deal doesn’t kick in before it is confirmed that all the elements
of the deal are upheld,” Warborn told POLITICO on Tuesday.
Željana Zovko, the top negotiator on the file from the EPP, the biggest grouping
in Parliament, will meet with U.S. Ambassador Andrew Puzder on Monday, she told
POLITICO. | Martin Bertrand/Hans Lucas/AFP via Getty Images
Benifei said the sunrise clause could enable his group to support the pact.
Still, he explained, this would require provisions allowing the Commission not
to implement the EU-U.S. agreement until Washington stops threatening the EU’s
digital rules, and until the U.S. lowers tariffs on EU steel derivatives.
“We are not there,” he said, expressing skepticism that the EPP would be willing
to place such tough demands on the Commission.
“They [EPP lawmakers] are a bit worried about the situation that is not moving,”
he said. “I need to see what they are actually ready to do, because to be frank,
my impression is that they are a bit in the mood [of saying] …‘Just let’s not
make Trump angry.’”
Carlo Martuscelli contributed to this report.
BRUSSELS — The EU will respond “firmly and proportionately” to any breach of its
trade deal with the U.S. reached last year, European Commission spokesperson
Olof Gill said Thursday.
Gill was responding to probes into unfair trade practices launched by the U.S.
overnight against the EU and other countries. The broad-spectrum investigations
could result in the imposition of new tariffs, raising concerns in Brussels that
this would breach the terms of the deal struck at President Donald Trump’s
Turnberry golf resort in Scotland.
“We have not received any indication that the U.S. administration intends to
deviate from those commitments,” Gill told a press conference. He added that the
Commission would reach out to its U.S. counterparts to clarify how the
investigations would affect the Turnberry deal.
U.S. Trade Representative Jamieson Greer said on Wednesday that his department
was looking into whether countries’ policies are fueling excess manufacturing
capacity — producing far more goods than demand supports — which officials say
can flood global markets and squeeze U.S. manufacturers.
The so-called Section 301 probes come after the U.S. Supreme Court last month
struck down Trump’s original wide-ranging tariffs. The White House subsequently
imposed blanket 10 percent tariffs in the interim as it works to enact new
duties.
Treasury Secretary Scott Bessent this week gave private assurances to EU trade
chief Maroš Šefčovič that the U.S. intends to stick to the transatlantic trade
deal, which sets a tariff ceiling of no higher than 15 percent on most EU
exports.