The European Union has agreed to extend a tariffs cease fire with the United States to give the two sides more time to negotiate a global arrangement on steel trade.
Brussels and Washington now will have until March 31, 2025 to reach a deal without having to worry about reimposition of tariffs the EU imposed on US products in response to Washington’s imposition of Section 232 tariffs on global steel and aluminum imports.
The two sides agreed to suspend the tariffs in order to negotiate a global steel arrangement aimed at incentivizing environmentally sustainable production and addressing global steel overcapacity.
The EU is prolonging the suspension of tariffs in return for the United States extending the
suspension of its tariffs for historical trade volumes that are reflected in the Tariff-Rate Quota system established in January 2022. Washington also agreed to provide for further exclusions from the tariffs for EU exporters.
“This important extension is the outcome of intensive engagement with the US and serves two key EU objectives: first, we are giving our importers and exporters the market stability and business confidence to continue to trade smoothly. Second, it provides us with the necessary space to continue pursuing the full and permanent removal of 232 tariffs on EU exports, as well as working on addressing global overcapacity and decarbonization of steel and aluminum industries, European Executive Vice President and Commissioner for Trade Valdis Dombrovskis said. “We are committed to ensuring that transatlantic trade in steel and aluminum is undistorted and that our exporters are treated fairly.”
US Trade Representative Katherine Tai praised the EU for extending the tariff waiver, allowing more time to “forge a forward-looking arrangement that will allow us to join forces economically to incentives fair and clean production and trade in the steel and aluminum sectors.”
The negotiations on a global steel arrangement need more time because they are technically complex, she said, adding that since the talks began two new wars have started and the global economy continues to face disruptions.
Comments
No comments on this item Please log in to comment by clicking here