EU edges toward US trade deal

Brussels is moving toward approval of the legal steps needed to implement the EU-U.S. trade deal, but the negotiations have been slowed by a dispute that now reaches beyond tariffs. European Parliament negotiators and EU governments are still trying to settle the final terms after weeks of delays by center-left and liberal lawmakers, according to Politico. (politico.eu) Those lawmakers have tied their objections to President Donald Trump’s tariff threats and to U.S. pressure on Greenland, the Danish autonomous territory. (politico.eu) The immediate issue is not whether Brussels and Washington reached a trade understanding last year. The issue is whether the European Union can put that agreement into force while lawmakers insist on new safeguards against future U.S. pressure. (politico.eu) Politico reported that a compromise is now within reach as the deadline pressure from Washington builds. ### Why are EU lawmakers still holding this up? Center-left and liberal members of the European Parliament have repeatedly delayed the process while pressing for stronger conditions in the implementing legislation. In January, Politico reported that lawmakers from the Socialists & Democrats, liberals, Greens and the Left wanted the deal blocked or frozen after Trump escalated threats over Greenland. (politico.eu) On January 28, Politico reported that the three largest political groups were discussing “Trump-proof safeguards” that would void the deal if Trump renewed threats against Greenland or the Kingdom of Denmark’s territorial sovereignty. (politico.eu) Those demands became part of the broader bargaining now underway between Parliament, member states and the European Commission. ### What does Greenland have to do with a trade file? Greenland became central because EU lawmakers no longer treat the trade pact as separate from U.S. pressure on European territory. Politico reported in January that senior lawmakers said the pact could not move ahead while Washington was threatening Greenland, and some officials discussed retaliatory trade options if the pressure intensified. (politico.eu) The New York Times reported on May 18 that, in closed-door talks, U.S. negotiators were demanding a major role in Greenland as part of talks meant to defuse Trump’s threats to seize the island. According to the Times, Greenlandic officials said the demand alarmed them and left them with limited leverage. (politico.eu) That account helps explain why lawmakers in Brussels have linked a trade implementation vote to a sovereignty dispute. ### Where does the 25% auto tariff threat fit in? Donald Trump’s leverage in these talks has included the threat of higher tariffs on European cars. Politico reported on May 7 that Trump had threatened to raise tariffs on European autos to 25% from 15% as frustration grew over the EU’s slow movement on implementation. (politico.eu) That tariff threat has shaped the pace of the Brussels talks. Politico reported on May 19 that officials still feared the administration could escalate again after July even though Trump’s tariff powers had faced legal and political setbacks. (politico.eu) ### What is actually close to being approved? The measures under negotiation are the legal proposals needed to implement the trade agreement, including steps to remove EU duties on U.S. industrial products. On March 26, the European Parliament backed two legal proposals with amendments designed to ensure the Trump administration complied with the deal. (politico.eu) Those amendments were meant to attach conditions rather than kill the agreement outright. The current phase is about reconciling Parliament’s position with EU governments and the Commission so the package can take effect. Bernd Lange, Parliament’s top trade negotiator, told Politico on May 7 that an agreement was on track to be finalized later this month. (politico.eu) ### What happens next in Brussels? Later in May, negotiators from the European Parliament, EU member states and the European Commission are expected to continue talks on the final compromise text. Politico reported that Brussels was edging toward approval on May 19 and that Lange expected the intra-EU deal to be finalized later this month. (politico.eu) Any final package will be judged not only on tariff terms but on the safeguards lawmakers attach to it. The next concrete milestone is completion of the implementing legislation in the EU institutions, with Parliament and member states still needing to lock in the final language. (politico.eu 1) (politico.eu 2)