EU member states and the European Parliament have agreed to implement the trade deal with the US that was hammered out last year.

The trade deal, officially known as the EU-US Joint Statement, was agreed between the EU and US last August in the wake of US President Donald Trump's threat to impose tariffs on imports into the US from Europe.

The agreement today (Wednesday, May 20) between the Council of the EU (council of ministers) and the parliament will, the latter institution said, provide for a "stable and predictable" transatlantic trade relationship, while "ensuring robust safeguards and preserving flexibility to be able to protect the EU’s economic interests, if needed".

It is expected that the trade agreement will serve as the basis to continue engaging with the US to lower tariffs and "co-operate closely" on shared challenges.

One of the main regulations of the joint statement is the elimination of customs duties on US industrial goods, and granting preferential market access, including via tariff rate quotas (TRQs) and reduced tariffs, for certain "non-sensitive" agricultural products from the US.

The parliament and council agreed to set up a safeguard mechanism, which the council said will give the EU the means to address "possible significant increases" in imports from the US that cause or threaten to cause serious injury to domestic producers.

This safeguard will be activated following a "substantiated request" from three or more member states; from the EU industry or trade unions; or upon the European Commission's own initiative.

When that happens, the commission will launch an examination to assess whether the increased imports have caused, or threaten to cause, serious injury to EU producers.

Where there is sufficient evidence of this, the commission may decide to suspend in whole or in part the application of the part of the trade deal concerned.

According to the council, the safeguard can be triggered in cases where the US fails to meet the commitments of the agreement, where the US "undermines the objectives" pursued by the agreement; or disrupts the trade and investment relations with the EU, including by discriminating against or targeting EU economic operators.

The position taken by the council and the parliament includes a "sunset clause", meaning the trade agreement will cease to apply at the end of 2029 unless the EU takes action to continue its provisions.

Six months after the regulation enters into force, and every three months thereafter, the commission will have to inform the council and the MEPs of changes in trade volumes and values of US exports to the EU of the goods covered by the regulation.

Now that negotiators from the council and the parliament have agreed a position on the trade deal, it will have to be formally signed off on by both institutions separately before it enters into force.