News Global Market EU 506 25 July 2023
The parties aim to reach an agreement by the autumn 2023
EU and the US still have differences over Global Agreement on Sustainable Steel and Aluminum (GSA), reports Kallanish.
The European Commission is seeking an agreement to avoid the return of Section 232 duties in the United States and corresponding duties in the European Union. However, the bloc is not ready to accept conditions that violate the standards of world trade, notes the European Commissioner for Trade Valdis Dombrovskis.
Experts argue that elements of the solution proposed by the US may unfairly discriminate against imports from some countries and violate WTO rules. In addition, they mean that the EU will have to delay the introduction of its CBAM.
The parties have been trying to find common ground on the GSA before the October 2023 deadline. Without an agreement, the US and the EU will return to the application of mutual tariffs in December 2023.
The United States, for its part, says it respects the EU’s concerns, but continues to wait for a proposal from the EU that would match the high levels of US ambition and take into account shared concerns about climate change and steel overcapacity.
Currently, US Section 232 tariffs of 25% are suspended on European steel and aluminum in exchange for a tariff quota system that limits European imports to the US. The EU responded by suspending tariffs on some goods produced in the United States.
As GMK Center reported earlier, the US International Trade Commission (ITC) started an investigation on the carbon intensity of steel production in the USA. The investigation is being conducted at the request of US Trade Representative Catherine Tye. These data will help advance the discussion with the EU regarding a global agreement on environmentally friendly steel and aluminum.
Also, the Biden administration concentrated on reaching an agreement on green steel with the EU and other partners, which will put carbon-intensive products from China and other countries at a disadvantage and help fight overproduction in the PRC.
