Remarks by Commissioner Šefčovič at the European Parliament Plenary debate on the implementation of the EU-US trade deal and the prospect of wider EU trade agreements

Madam President,

Honourable Members of the European Parliament.

On 27 July, at Turnberry, Europe faced a stark choice: risk economic catastrophe, or act to protect our economy. We chose the latter; the only responsible option for our businesses and jobs.

So, this was not, as some have claimed, a “capitulation”, or a “sell out” or “no negotiations”.

Far from it – it was a choice, of stability and predictability, over uncertainty, escalation, and ultimately, a trade war that would have benefited no one in Europe.

And throughout these tough and demanding negotiations, our commitment to the EUs values, and its unique economic and social model, has been unwavering.

This model, including our regulatory autonomy, is not for sale. Ever.

And we stand ready to defend it, if need be, also with our trade instruments.

So the choice we have made, was – and still is – in our best interests.

After having spent hundreds of hours speaking to my counterparts, I can tell you with clarity: the US is convinced that it needs to change the terms of its trade with the rest of the world.

Our vision is different – but the world as we knew it, will not come back. And nostalgia will not help us adapt to the new reality.

Making this deal is the right move for the EU, for four reasons:

First, by reaching an agreement with the United States, Europe avoided tariffs on our exports of 30 to 50%.

This would have had a severe impact, on our farmers, our carmakers, our manufacturers, our workers, our citizens.

It would have severely damaged our political partnership and our economic relations with the US, affecting:

• • 1.7 trillion euros of trade every year;
  • 5 trillion euros in investment on both sides; and
  • 5.7 million jobs that depend on EU-US trade.

I didnt hear many in politics and no-one in the industry, arguing that we should put this at risk – particularly not with a war still raging on the European continent. Ultimately, we secured the best deal possible.

Second, this agreement provides more stability and predictability, vital for EU businesses suffering from volatility and uncertainty.

Third, the deal helps ensure access for European products to the US market on competitive terms, in particular compared to imports from other countries.

And finally, the deal provides the opportunity to move beyond recent tensions.

It creates a platform for more positive engagement with the US, with a roadmap for expanding market access and deepening our trade and investment relationship.

Given these factors, I believe that when we ask ourselves whether the EU is better off with this deal than without it, there is only one answer.

And I am convinced that it is the right political decision for the EU now to follow through and implement this deal.

Honourable Members, I have kept you abreast of all key developments over the past months.

As for next steps: The Commission has already followed through on our commitment to introduce legislation allowing for the lowering of tariffs on certain products, in line with the Joint Statement.

We have presented to you two legislative proposals – one covering bilateral reductions of tariffs for all industrial products and some non-sensitive agricultural and fisheries products. The other relates to prolonging the so-called EU-US lobster deal.

They are now in the hands of this House and the Council.

We therefore stand at a crucial democratic moment. I have heard the criticism that some of you have expressed. But we now need to make the politically responsible choice and take the necessary steps to move our relationship with the US forward.

I ask you for your support, and I assure you that the Commission stands ready to assist and find constructive solutions.

At the same time, we have to ensure that the US honours its obligations under the deal as well.

As a first step, on 31 July, the US issued an Executive Order confirming the implementation on 7 August of a single, all-inclusive 15% tariff on imports of goods from the EU.

On 5 September, another Executive Order was signed enabling Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer to implement the tariff reductions and exemptions in the deal.

I welcome the confirmation by Secretary Lutnick on Monday that the US will implement these commitments by reducing tariffs on car and car parts from 27.5% to 15% retroactively from 1 August, crucial for the competitiveness of our car sector.

It means savings of more than 500 million euros each month in duties.

Similarly, I welcome the confirmation that the US will apply retroactively, as of 1 September, exemptions from duties for various sectors, including aircrafts and components, generic pharmaceuticals, active ingredients, some chemical and agricultural products, and natural resources and other key inputs. 

We will also work with the US to expand the number of sectors that are exempted from the 15% tariff – including wines and spirits, medical devices, and more.

We are seeking to kick start work with the US on ring fencing our economies from overcapacity, and ensuring that EU exports of steel and aluminium to the US benefit from a Tariff Rate Quota.

And I have heard your concerns regarding the expansion of the derivatives list – I have raised this with my US counterparts and I will continue doing so until we resolve this issue.

Let me emphasise, however, that our draft legislation includes safeguards to ensure that we can suspend our tariff liberalisation, in part or in full, should the US not respect the terms of the deal.

Finally, I want to assure you that I will continue our established practice and keep this House fully informed about, and involved in, the work to implement the Joint Statement.

I want to finish by considering the broader context of our global trade relations. 

After all, the US is not the only game in town.

In 2024, the US represented 17% of our total trade. But we also need to take care of the other 83%.

That means continuing our efforts to diversify our trade relations.

So we are pushing an ambitious and pragmatic Free Trade Agreement agenda – to expand our trade, diversify our supply chains, and offer our companies new export markets.

A week ago I was proud to present the final texts for the deals with Mercosur and Mexico.

The EU Mercosur Partnership Agreement will create a market of over 700 million people, with tariff savings of over 4 billion euros a year, and EU exports to Mercosur countries are expected to surge by 39% by 2040. 

Mexico is our second largest trading partner in Latin America, a net food importer and one of our top suppliers of critical raw materials.

Elsewhere, President von der Leyen and Indonesian President Prabowo announced in July a political agreement to conclude an FTA this September.

I will be travelling to Indonesia later this month with a view to doing just that.

Before that, I will also visit India where we aim to conclude negotiations on an FTA still in 2025.

We will also move ahead with our other ongoing negotiations, such as those with the Philippines, Thailand, Malaysia, the United Arab Emirates, and Australia.

While also working towards structured collaboration with our partners in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the CPTPP.

Finally, last but not least, our support for the multilateral trading system and the WTO remains unwavering and we want to work together with like-minded partners to reform it.

So, we need to proceed with determination, courage and strong political will to protect our interests in a volatile global environment.

The deal with the US restores stability and predictability with our number one trade and investment partner, and a key ally, ensuring a platform from which we can take discussions forward.

As we progress with our global FTA agenda.

Thank you and I look forward to hearing your interventions.