The Council of the European Union (EU) on November 28 approved the negotiating frameworks for two important regulations to implement the tariff-related contents in the EU-US Joint Statement, agreed by the two sides on August 21. This is considered a major step forward in the effort to restore stability and predictability in the increasingly complex transatlantic trade relationship.

The first regulation aims to adjust tariffs and tariff quotas on US industrial goods and certain types of seafood and agricultural products. Accordingly, the EU will remove remaining tariffs on US industrial goods and grant preferential market access to certain seafood and agricultural products that are considered non-sensitive. While the Council basically supports the European Commission (EC) proposal, it has added some important adjustments to strengthen economic surveillance and protect vulnerable sectors.

The EC is required to closely monitor the impact of trade liberalisation and report to the European Parliament and the Council by 31 December 2028. A bilateral safeguard mechanism has also been strengthened to allow the EU to intervene if imports from the US increase sharply or cause significant damage to EU production. In addition, provisions on rules of origin have been clarified to support implementation.

The second regulation concerns the continuation of the tariff suspension on certain live and frozen lobsters imported from the US, which was introduced in December 2020 for a period of five years. This time, the duty exemption was extended to include processed lobsters. The Council left the EC proposal unchanged.

The adoption of the two negotiating frameworks puts the EU Council ready to enter into inter-institutional negotiations with the European Parliament towards a final agreement on both texts. This is part of a broader effort to renew trade relations between the world's two largest economic partners. The EU and the US currently account for nearly 30% of global trade in goods and services, and about 43% of global GDP. Bilateral trade has doubled in a decade, reaching around 1.7 trillion euros in 2024, while mutual investment reached more than 4.7 trillion euros in 2023.

These two regulations demonstrate the EU's implementation of its commitments in the 2025 Joint Declaration, aiming to adjust tariffs to balance and reduce trade tensions that have existed for many years. On the US side, Washington has issued decrees to reduce tariffs and adjust Section 232 tariffs, including lowering tariffs on cars and auto parts from the EU to 15% with retroactive effect from August 1, 2025, exempting tariffs on some key EU products such as aircraft and generic pharmaceuticals, and imposing a 15% tariff on wood and related products.

The EU's move to implement the tariff elements in the joint statement demonstrates its determination to strengthen economic cooperation, promote market access and move towards a more stable and healthy trade environment for businesses on both sides of the Atlantic.

Source: VTV

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