In this way, the parties try to prevent the return of mutual duties
EU and US leaders are aiming to announce an interim deal on steel and aluminum trade at a summit on October 20 that would prevent the rollback of US Section 232 tariffs and corresponding EU tariffs. Bloomberg informs about it with the reference to sources.
As insiders note, officials of the White House and the European Commission are negotiating a preliminary agreement that will cover two main points of the so-called Global Agreement on Sustainable Steel and Aluminum Production (GSA) – the parties have been discussing it since 2021. It is about combating non-market overcapacity and carbon emissions.
The parties are seeking a political agreement because they believe they do not have enough time to reach a formal agreement before the deadline they set. In addition, the EU and the US remain at odds on some key aspects of the issue, such as compatibility with international trade rules.
The agreement will not be legally binding, but a lack of agreement by October 31 will mean an automatic return of mutual duties in early 2024, which will affect $10 billion of the parties’ exports.
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. This data will help advance the discussion with the EU regarding a global agreement on environmentally friendly steel and aluminum.
Also, the Biden administration is focused 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.