The European Parliament has resumed the approval process for a trade agreement with the United States, following a pause triggered by former U.S. President Donald Trump’s threats regarding Greenland. The move comes after Trump retracted both his suggestion of potentially acquiring the Danish territory and associated tariff threats against eight European nations, according to statements released on February 4th by European Parliament Trade Committee Chairman Bernd Lange.
The initial suspension of the agreement stemmed from Trump’s repeated expressions of interest in purchasing Greenland, a self-governing Danish territory, and subsequent warnings of potential military threats directed towards the region. Simultaneously, Trump had threatened 10% tariffs on goods from eight European countries, escalating trade tensions. These actions prompted the European Parliament to indefinitely postpone a vote on the trade deal, as reported on January 21st.
Chairman Lange indicated that the European Parliament’s Trade Committee has decided to restart the approval procedure. A vote within the committee could occur as early as February 24th. However, Lange similarly emphasized that the Parliament will support measures allowing the EU to suspend the agreement if the U.S. Were to again threaten the security interests or territorial integrity of EU member states, or impose recent tariffs. The inclusion of a “sunset clause,” the expiration date of which remains undefined, has also been agreed upon.
The decision to resume the approval process follows approximately two weeks after Trump backed down from both the Greenland acquisition rhetoric and the tariff threats. Progressive members of the European Parliament had previously demanded the inclusion of “safeguards” within the agreement to address Trump’s unpredictable policy decisions, a demand that appears to have influenced the current course of action.
If the Trade Committee approves the agreement on February 24th, it will then proceed to a vote by the full European Parliament and require ratification by the governments of all 27 EU member states, potentially leading to final approval as early as next month. The trade agreement, initially agreed upon in July of last year, involves the U.S. Lowering tariffs on EU steel and aluminum imports from 30% to 15% in exchange for a commitment from the EU to invest $600 billion (approximately 880 trillion Korean Won) in the U.S. Economy.
The resumption of the trade agreement process occurs amidst ongoing scrutiny of U.S. Trade policies and international relations. Recent reports indicate continued pressure from the Trump administration on international partners regarding investment commitments, including potential pressure on South Korea related to shipbuilding investments.
