European Union stalls US trade deal in protest over Greenland

The European Parliament has decided to suspend its work on the European Union’s trade deal with the United States in protest at US President Donald Trump’s demands to acquire Greenland and threats of tariffs on European allies who oppose his plan.

The EU assembly has been debating legislative proposals to remove many EU import duties on US goods, a key part of the agreement struck in Turnberry, Scotland, at the end of July, as well as to continue zero duties for US lobsters, initially agreed with Trump in 2020. The proposals require approval by the parliament and EU governments.

Many lawmakers have complained that the trade deal is lopsided, with the EU required to cut most import duties while the US sticks to a broad rate of 15 per cent. However, they had previously appeared willing to accept it, albeit with conditions, such as an 18-month sunset clause and measures to respond to possible surges of US imports.

The trade committee of the European Parliament was due to set its position in votes on January 26-27. However this has now been postponed.

The chair of the committee Bernd Lange told a news conference on Wednesday that the new tariff threats had broken the Turnberry deal, saying it would now be put on hold until further notice.

However, freezing the deal risks angering Trump, which could lead to higher US tariffs. The Trump administration has also ruled out any concessions, such as cutting tariffs on spirits or steel, until the deal is in place.

Global shares rebounded following a selloff in prior session after Trump toned down his rhetoric in his threats to acquire Greenland.

‘UK won’t yield to pressure’

• British Prime Minister Keir Starmer said he would not yield to Donald Trump on his opposition to US demands to acquire Greenland, adding that the US president had reversed his prior support for a Chagos Islands deal to put pressure on Britain.
• Starmer has called for "calm discussion" on Greenland and indicated he did not wish to escalate a trade war, after Trump threatened tariffs on Britain and other European countries.