SEAFOOD TRADE AGREEMENT BETWEEN THE US AND EU FACES THE RISK OF COLLAPSE

Seafood trade agreement between the US and EU faces the risk of collapse. According to a recent article by VASEP. The preliminary trade deal between the United States and the European Union (EU), reached in July 2025, is in danger of stalling after facing negative reactions from European lawmakers. The deal is expected to completely eliminate EU tariffs on U.S. seafood, while the U.S. retains a 15 percent tariff on European goods.

Some members of the European Parliament, particularly from the Trade Commission, expressed concern about the stability and enforceability of the agreement. They argue that the terms may lack long-term commitments, while the U.S. is constantly adjusting its trade policy, typically adding about 400 steel products to the list subject to a 50 percent tariff just a month after the deal was announced.

In addition, the deal is under additional pressure from the US when the US Secretary of Energy announced that the deal will not be implemented if the EU does not move to restrict energy imports from Russia.

In Europe, some parties and business associations also oppose the deal because of concerns about rising costs and affecting the competitiveness of EU exporters. However, the opposition currently holds only about 19% of the seats in the European Parliament, so the deal is still likely to be passed if a broader political consensus is reached.

In terms of content, the agreement is completely exempt from tariffs for all types of American seafood exported to the EU. Harmonised tariff codes (HTS) that enjoy preferential treatment include Alaskan pollock, salmon, squid, shrimp, cod and whole lobster products. In 2024, the total volume of seafood imported into the EU under these HTS codes will exceed 395,000 tons, equivalent to about 63 million euros in tariffs – of which Alaskan pollock alone accounts for 340,000 tons.

However, this agreement does not apply on the principle of reciprocity. The 15% tax on EU seafood exports to the US remains the same, without a corresponding tax reduction clause. In addition, the agreement also includes a clause prohibiting citing damage to the European domestic industry as a reason for suspending the tax exemption.

In the event that the deal is ratified by the EU, US exporters can apply for tax refunds for HTS-code items from August 1, 2025 onwards. The US National Fisheries Institute (NFI) has expressed strong support and called on the US administration to approve it soon to help the country’s seafood businesses take advantage of the opportunity.

Meanwhile, the European Commission continues to push for a policy of trade openness, as demonstrated by the ratification of recent free trade agreements with Mexico and the Mercosur bloc. In particular, the agreement with Mercosur also includes the elimination of tariffs on more than 80% of seafood products, in which shrimp, lobster and frozen tuna fillets are exempt from tariffs as soon as the agreement comes into force. Other products will be gradually reduced to zero within 4–10 years.

However, for the agreement with the United States to officially take effect, it still needs to be ratified by both the Parliament and the European Council – a process that is expected to be controversial in the near future.

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