The European Union approves legislation to implement the trade agreement with America economy

European Union governments have approved legislation to reduce customs duties on a large number of American goods, in a move aimed at averting US President Donald Trump’s threats to impose higher duties on European cars and other goods, according to Reuters.

An informed European source said that the ambassadors of the 27 member states of the European Union approved the legislation on Wednesday, about 10 months after reaching the trade framework agreement between the two sides.

The European Union and the United States reached the agreement during a meeting held at Trump’s Turnberry golf resort in Scotland last July.

Under the agreement, the European Union agreed to cancel customs duties on many American industrial goods, and grant American agricultural and seafood products preferential access to the European market, in exchange for accepting 15% American duties on most European goods.

But the European Union has not fully implemented its obligations since signing the agreement, which prompted Trump to threaten to impose “much higher” duties on European goods if the bloc does not commit to implementation by the fourth of next July.

European Union ambassadors approved the new legislation after negotiators for the Union governments and the European Parliament last week reached a final formula that also includes preventive measures in the event that Washington backs down from its trade commitments.

The legislation still needs the approval of the European Parliament, as its Trade Committee is scheduled to hold an indicative vote next week, before presenting the project to the full Parliament in mid-June.

The preventive measures include a clause allowing the trade agreement to be terminated at the end of 2029, in addition to a mechanism that gives the European Commission the power to suspend parts of the agreement if the United States re-raises customs duties on some industrial products.

These products include washing machines, wind turbines and other goods with high levels of steel or aluminum, which are currently subject to a 25% US tariff.