BRUSSELS, (Sputnik) - The decision was supported in a 638-45 vote, with 11 abstentions. The agreement, known as the "lobster deal" was agreed back in August, but got a parliamentary go-ahead only now. It comes as the EU hopes to settle trade disputes with the US after projected president-elect Joe Biden comes to power.
According to the legislature, lawmakers supported the agreement "as a basis for renewed constructive transatlantic engagement".
"In exchange for the elimination of duties on live or frozen lobster imported from the US, the EU will get duty relief of a comparable economic value on its own products, such as prepared meals, certain crystal glassware and cigarette lighters. This is the first EU-US negotiated tariff-reduction in over 20 years, and is applicable for all WTO trading partners," the parliament said.
The regulation will take effect after its publication in the EU’s Official Journal. The tariff cuts will be retroactive to August 1.
The US and EU have been entangled in the tariff war since May 2018, when the Donald Trump administration slapped tariffs on steel and aluminum imported from the bloc. The bloc retaliated with 25 percent tariffs on US motorcycles and other items, including whisky. The sides have since also exchanged duties as part of the long-lasting Boeing-Airbus subsidy dispute.