On Thursday (19 March), the European Parliament’s International Trade (INTA) committee voted by a broad majority (29 in favour, 9 against and 1 abstention) to advance the trade agreement reached last summer with the United States. However, MEPs have attached new strict conditions to ensure the US complies with its commitments, reflecting growing caution in the EU about the reliability of transatlantic trade relations.
Important new conditions and safeguards
In the approved text, lawmakers introduced firm conditions that must be met before the agreement can take effect. The United States would be required to limit tariffs on EU goods to no more than 15% (or its standard lowest rate), with tighter provisions for key sectors such as semiconductors, pharmaceuticals, automobiles and aircraft parts.
MEPs also reinforced enforcement mechanisms. The agreement includes a sunset clause, expiring on 31 March 2028 unless renewed, alongside a “sunrise” clause ensuring it only enters into force once the US fully complies. In addition, Parliament strengthened the suspension clause, allowing the EU to halt implementation immediately if new US tariffs are introduced.
Together, these provisions give the EU greater leverage and flexibility, allowing it to withdraw from the deal if conditions are not met or if circumstances change.
Cautious optimism on both sides
Despite the stricter conditions, the vote reflects a shared interest in avoiding renewed trade tensions. US Ambassador to the EU Andrew Puzder welcomed the outcome, urging both sides to “seize this positive momentum” to deliver stability and opportunity. Nevertheless, INTA Chair Bernd Lange stressed that the EP will not “take any final decision without clarity”, but he hoped the vote would “launch a positive dynamic of trade cooperation where mutual interests converge.”
What happens next?
The next step is a vote by the plenary of the European Parliament, likely to be held on 26 March. It will be followed by negotiations with EU Member States. These discussions will determine the final shape of the agreement and whether the conditions set by MEPs are maintained.
Conclusions
While the vote signals a desire to avoid an all-out trade war, the inclusion of the 2028 expiry date suggests that Europe remains deeply sceptical of long-term US reliability. For now, the focus remains on ensuring that the “interim” 10% tariffs currently in force in the US do not climb back toward the levels seen during previous trade conflicts.
