Volkswacht Bodensee - EU vows to 'respond firmly' to any trade pact breach by US

The probes centered on overproduction and importing goods made with forced labour, US Trade Representative Jamieson Greer said on Wednesday.

"We will be seeking further clarity from the US on how the opening of this section 301 investigation would interact with" the EU-US agreement struck last year, European Commission spokesman Olof Gill said.

"The commission would respond firmly and proportionately to any breach of the joint statement commitments," he added.

Gill said the European Union shared the United States' concern about structural overcapacity in the global economy.

"However, the sources of such overcapacity are well identified, and they do not lie in Europe," the spokesman added.

The future of the EU-US tariff pact has been thrown into question after the US Supreme Court ruled in February that Trump lacks the authority to impose levies under a 1977 law.

Trump responded with fresh tariffs of 10 percent on imported goods, but the EU has said it received US reassurances it will stand by the deal.

The commission said the EU is still abiding by the accord and expected the United States to show the same commitment.

"We have not received any indication that the US administration intends to deviate from those commitments," Gill said.

EU lawmakers in the European Parliament's trade committee could give their green light next week to removing tariffs on US industrial goods -- a key step toward implementing Europe's side of the deal.

H.Gerber--VB