Brussels, May 20 (QNA) - The European Union reached a preliminary agreement on Wednesday on the terms for a legislation that would remove import duties on US goods, a key element of the trade pact with Washington. The agreement is likely to help avert the imposition of higher US tariffs on EU products.

This internal EU agreement is expected to bring a degree of calm to the world’s largest trading relationship, with trade in goods and services totaling around $2 trillion annually. This comes a week after the US President’s visit to China, which saw friendly remarks but no substantive progress.

The bloc relies on Washington for around 20% of its goods exports, but President Donald Trump is determined to reduce the goods trade deficit with the EU, estimated at more than 200 billion dollars, through the imposition of tariffs.

"The EU walks the talk, while defending our interests. Once approved, it'll boost transatlantic stability and cooperation," European Commissioner for Trade Maros Sefcovic said.

Trump had previously warned he would impose much higher tariffs on EU goods, including cars, unless the bloc meets its commitments under the trade agreement by July 4, after earlier threatening to raise tariffs on car imports from the bloc to 25% from the current 15%.

The bloc is expected to implement the step before the July 4 deadline, with a final approval vote in the European Parliament expected in mid‑June. (QNA)