Commerce Minister Michael Damianos has hailed the transatlantic partnership between the European Union and the United States following the EU Council’s approval of two key pieces of legislation aimed at facilitating trade across the Atlantic.
Damianos expressed his support for the “strong and open” relationship, emphasising the importance of balancing openness with the need to protect EU interests. “We are committed to a strong and open transatlantic partnership with our historic ally, but openness must go hand in hand with safeguarding our interests,” he stated. He noted that the new measures would bolster stable trade flows while providing the EU with the means to respond if the agreement is not upheld.
Transatlantic partnership: Legislative Changes to Tariff Structures
The first regulation approved eliminates tariffs on all US industrial goods entering the European single market. Additionally, it offers preferential market access for a variety of seafood and agricultural products until the end of 2029. However, the European Commission has been empowered to suspend these tariff preferences if the US maintains a tariff rate exceeding 15 per cent on EU steel and aluminium derivatives. A report on this matter is due to be presented to the EU Parliament and Council by December 1.
Support for US Lobster Exports
The second regulation focuses on the US lobster trade, extending the EU’s zero tariffs on live lobster and adding processed lobster to the list of tariff-free imports until July 31, 2030. This move is expected to significantly benefit US lobster exporters and enhance trade relations.
Political Backing and Future Oversight
Last week, both pieces of legislation received approval from the European Parliament, with four of Cyprus’ six MEPs voting in favour. The parliamentary vote reflects a strong consensus on the need to enhance transatlantic trade. Bernd Lange, chairman of the Parliament’s international trade committee, pointed out that these regulations form part of the EU’s defensive toolbox. He remarked, “It not only strengthens and stabilises EU-US trade relations, but it also gives the EU the ability to respond if the United States fails to uphold its side of the bargain.”
Commitment to Monitoring Compliance
Lange underscored the importance of vigilance in the implementation of the agreement, stating that if the US breaches the terms, the Parliament will insist on full use of available regulatory instruments to uphold EU interests. This proactive stance aims to ensure that the EU remains protected while fostering a robust trading relationship with the US.
