European Union negotiators failed to reach a common position on the EU-US trade deal on Wednesday night. It was the second political dialogue on the US proposals on customs duties. Despite the honourable efforts of the Cyprus Presidency, MEPs are very concerned about the "regressions" of US President Donald Trump and seek safeguards.
But that delay risks provoking the ire of President Trump again, who has threatened to impose 25% tariffs on European automakers if the EU fails to implement the transatlantic trade deal reached at the Scottish golf club of Turnberry last year.
Ahead of the meeting, the head of the European People's Party threatened to break off the negotiations if this round did not result in a final agreement. For his part, EU Trade Commissioner Maroš Šefčovič urged negotiators to reach an agreement that would help stabilize trade relations with Washington. But, after about six hours of talks, there was no agreement.
According to diplomatic sources, MEPs and diplomats made some progress on technical issues, but the bigger political question about what to do if the US violates the agreement remains unresolved. Parliament wants to persuade the US to commit to lifting the steel tariffs imposed by the Turnberry signing.
The attitude of the Cyprus Presidency has allowed progress to be made on some elements of the proposals. With this positive momentum, work will continue at technical level, with a view to holding another political trilogue as soon as possible, most likely on 19 May.
"Last night, we spent almost six hours in an important trilogue on the tariff regulation on the implementation of the EU-US Joint Statement between the European Union and the United States. This significant investment of time and effort suggests that we are making significant progress and have already achieved a lot – although, of course, nothing has been agreed until everything is agreed," Commissioner Šefčovič said in a post on Thursday.
"As confirmed by EU leaders, the Council is committed to proceed swiftly with the implementation of the EU-US Joint Statement, in full respect of the ordinary legislative procedure. We are fully committed to continuing our constructive engagement with the European Parliament with a view to completing the legislative work as soon as possible. From the beginning, our goal as the Presidency has been to work towards a successful and balanced outcome in a timely manner, ensuring certainty and stability for European businesses and companies," said Michalis Damianos, Minister of Energy, Trade and Industry of the Republic of Cyprus.
Where does the thing "stick"
"My objective remains threefold: first, to show that the EU is delivering on its words and delivering on its commitments, second, to ensure an outcome that fully respects the EU-US Joint Statement, and third, to safeguard the interests of EU stakeholders, including by equipping the Commission with the necessary means to ensure that the EU-US Joint Statement is faithfully implemented by both sides," Maroš Šefčovič, the most competent EU Commissioner, stressed in his post, who has not stopped contacting the American agents all this time.
While the Commission and a majority of EU member states want to "seal" the Turnberry deal, MEPs have been frustrated by Trump's threats earlier this year to annex Denmark's Greenland. They have also reassessed whether the deal is still good after the U.S. Supreme Court struck down Trump's initial tariffs in February.
Led by veteran trade committee chairman German MEP Bern Lange, lawmakers called for additional conditions to be added that would delay the deal until Trump lowers tariffs on steel, suspend it if it threatens the EU's territorial integrity and end it before the end of his term.
So far the sides have not agreed on any of the most controversial points of discussion, despite progress. "The two sides need to check with the political groups and member countries respectively to see what they are willing to accept," the official added of the late-night talks.
For his part, Lange, the Parliament's chief negotiator, said both sides were "converging towards an agreement", but added that more time was needed.
MEPs: They insist on safeguards
The EU's trade chief, Šefčović, called for a "swift return to the agreed Turnbury terms", according to a Commission spokesman – a message likely aimed at reassuring MEPs. But a person briefed on the closed-door meeting said Greer did not take the threatened 25 percent tariff on European cars off the table.
Parliament's negotiators insist that the deal is simple – but only if there are safeguards. The key demand: enforceable back-up mechanisms if Washington backs down. "If they want an agreement, they know what they have to accept," the chairman of Parliament's delegation for relations with the US, Brando Benifei, told us.
Commission and Council officials warn that MEPs may be exaggerating. "They have complicated things with bells and whistles," said one diplomat. The debate now is about what the safeguards really mean – from suspension clauses to review mechanisms – and how much Washington will tolerate.
Donald Trump gave an extension until July
Commission President Ursula von der Leyen had a telephone conversation with US President Trump, after his new post about high tariffs against the EU if the EU-US trade agreement has not been implemented by July 4.
In fact, this is a move of retreat by the American President, who a few days ago threatened the EU with tariffs of 25% on car imports.
The margin until July 4 now gives lawmakers time to complete the process.
In a post on X, Ursula von der Leyen noted: "I had a very good phone conversation with President Trump. We discussed the EU-US trade agreement. We remain fully committed on both sides to its implementation. Good progress is being made towards reducing tariffs by the beginning of July."
According to the President of the Commission, they also discussed the situation in the Middle East "and our close coordination with regional partners".
He explained that "we are united that Iran should never possess nuclear weapons. Recent events have clearly shown that the risks to regional stability and global security are very great."
