EU Decides to Discontinue Approval For US Trade Deal

The European Parliament announced a suspension of the approval for the United States' major trade deal agreed in July, in protest against Donald Trump’s threat to take over Greenland. The announcement was made in Strasbourg, France, on Wednesday, as US President Donald Trump addressed the World Economic Forum in Davos.

This significant move followed the renewed trade tension between the US and Europe, triggered by Trump’s demand to acquire Greenland, which had shocked financial markets, raising concerns of a trade war and the possibility of retaliation against the US.

Donald Trump said on social media that he had reached a ‘framework’ deal on Greenland’s future, and there will be no new tariffs imposed on eight NATO members. Trade tensions between the US and Europe have lessened since both sides struck a deal at Trump’s Turnberry golf course in Scotland in July.

That deal set US levies on most European goods at 15 per cent, down from the 30 per cent which Donald Trump had originally threatened as part of his ‘Liberation Day’ wave of tariffs in April. In exchange, Europe has agreed to invest in the US and is expected to strengthen US exports.

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This deal also requires EU approval to become official. However, days after Trump's threat on Wednesday, the  Chair of the European Parliament’s International Trade Committee said, “it was left with no alternative but to suspend work on the two Turnberry legislative proposals”.

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