EU freezes US trade deal as talks on Australia FTA become more urgent
The new tariffs has also frozen an impending EU-US trade agreement, also called the Turnberry Deal.
EU’s international trade committee chairman Bern Lange says the implication of the US Supreme Court ruling is very clear.
“Its implications cannot be ignored; business as usual is not an option. A key instrument used on the US side to implement the Turnberry Deal is no longer available,” he says.
Lange says the US Trade Act Section 122 powers that Trump is now using would impose an extra 15% on top of current tariffs.
“This constitutes a clear departure from the terms of the Turnberry Deal,” he says.
The European Commission says it is seeking “full clarity” and expects the US to honour its commitments.
“EU companies and exporters must have fair treatment, predictability, and legal certainty,” a commission statement says.
“When applied unpredictably, tariffs are inherently disruptive, undermining confidence and stability across global markets and creating further uncertainty across international supply chains.”
The EC also says it is working towards ‘zero tariff’ trade deals worldwide, including with Australia; it recently signed a deal with India.
Farrell told Sky News that an EU-Australia deal is close and efforts have been given new urgency by events in the US in the last week; click here to read our earlier story.
“I think what President Trump has done over the weekend gives us further impetus,” he says.
“We have to be able to demonstrate as a trading nation that we believe in free and fair trade, and we can find other trade partners in the world.”
Farrell says they are standing firm on EU access for Australian farmers which is holding up the signing of a deal.
“I think there’s a determination on both sides, made more important by the decisions in the US over the weekend, to get this deal done.”
