European Parliament to vote on resolution in March, but non-binding decision carries weight, given body’s trade role
BRUSSELS, Belgium (Reuters) — European Union lawmakers voted earlier this month to start negotiations with the United States over lower tariffs for industrial goods, a deal designed to ease trade tension with U.S. President Donald Trump’s administration.
The European Parliament’s international trade committee voted 21 to 17 on a resolution encouraging EU governments to back negotiating mandates put forward by the European Commission.
The resolution now goes to a vote by the full chamber in March. It is not binding but will have a bearing on possible talks with Washington because Parliament would have to approve any deal.
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The final text, broadly supported by centre-right parties but opposed by the left of centre, also set out conditions for negotiations: they are to include cars and car parts, exclude agriculture and should be suspended if Washington imposes new punitive tariffs, such as on EU car imports.
EU steel and aluminium are already subject to protective U.S. import duties.
The commission’s negotiating mandates, published last month, are more notable for what they leave out than what they include.
The EU proposes reducing tariffs on industrial goods such as machinery and materials. The United States has a wide-ranging wish list, including comprehensive agricultural market access.
The two sides ended a stand-off of several months in July, when Trump agreed to hold off imposing tariffs on EU car imports while the two sides looked to improve trade ties.
They committed to work toward removing tariffs on “non-auto industrial goods,” discuss ways to agree on product standards to boost trade and increase EU imports of U.S. soybeans and liquefied natural gas.
The two EU negotiating mandates will need to be approved by EU governments. One looks into removing tariffs from industrial goods and the other into rules to allow U.S. testing bodies to clear products for sale in the European Union and vice versa.
EU ministers responsible for trade were scheduled to discuss the mandates at a meeting in Bucharest late last week, aware that Trump’s patience is not infinite.
The U.S. Commerce Department recently sent a report to Trump that could lead to steep tariffs on imported cars and auto parts. The contents of the report were not disclosed, but it is expected to conclude that car imports are a matter of national security, warranting action.
