Brussels, July 28
A senior European lawmaker has sharply criticised a draft trade agreement between the European Union (EU) and the United States, warning that it could undermine the bloc's economic stability and job security.
Bernd Lange, chair of the European Parliament's Committee on International Trade, described the proposed framework, which includes a 15 per cent tariff on all EU exports to the United States, as "unsatisfactory" and "significantly imbalanced."
The tariff rate, he noted, would represent a fourfold increase over current average levels, while the EU would commit to zero tariffs on US goods.
"This is a deal with a slant. Clearly, concessions have been made that are difficult to bear," Lange said in a statement on Sunday.
US President Donald Trump and European Commission President Ursula von der Leyen announced earlier in the day that they had reached a trade agreement under which the United States would impose a baseline tariff of 15 per cent on EU goods, reports Xinhua news agency.
Although both leaders described the deal as a step toward restoring "trade balance" and promoting more equitable two-way commerce, the agreement allows Washington to levy broad tariffs while securing zero-tariff access for a range of strategic American exports.
In contrast, the EU has pledged to purchase 750 billion US dollars' worth of American energy and commit an additional 600 billion US dollars in investments in the United States.
Lange noted that while Trump publicly declared a blanket 15 per cent tariff during remarks following the talks, he had earlier explicitly excluded certain sectors, including steel and pharmaceuticals.
He added that increased European purchases of US energy, particularly liquefied natural gas, were anticipated, as the EU continues efforts to reduce its reliance on Russian fossil fuels.
However, Lange criticised the 600 billion dollars in planned additional investments, including increased funding for US military technology, calling such measures contrary to European economic interests. He likened the pressure tactics used in the deal to those Washington employed in recent negotiations with Japan.
"Overall, this deal will contribute to weakening the EU's economic development and harming its gross domestic product," he said.
— IANS
Reader Comments
The US always plays hardball in trade negotiations. 15% tariff on EU goods while getting zero tariffs in return? That's daylight robbery! No wonder they're pushing for similar deals with India. We must protect our 'Make in India' initiative at all costs.
Interesting how they excluded steel and pharma - the sectors where US needs EU most. Shows every country protects its key industries. India should do the same for our IT and pharma sectors. Trade can't be one-way street!
The $600 billion investment clause is shocking! Why should EU fund US military tech? This sets dangerous precedent. Hope our government notes this before signing any defense deals with US companies. Atmanirbhar Bharat is the way forward ✊
While the deal seems imbalanced, let's not forget EU's own protectionist policies. They've been equally tough on developing nations. Maybe this will make them reconsider their stance in global trade negotiations.
The timing is suspicious - right when EU is trying to reduce Russian energy dependence. US knows they have leverage and is exploiting it. India must diversify its energy sources too to avoid such pressure tactics in future.
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