October 31, 2021 – The United States and the European Union have reached an agreement in the steel and aluminium dispute. According to media reports, the European steel industry has received a tariff rate quota of 3.3 million tonnes of steel for exports to the United States.
Condition: 100% melted and poured in the EU
The basic condition for exporting to the United States, however, is the Americans’ melted and poured regulation. This means that all steel products must be 100% melted and poured in the European Union. This is to prevent products that have only been slightly modified in the EU from being imported into the United States. The same should apply to aluminium products.
Tariff rate quota below 2019 export level
This means that the quota for the EU has been set well below the 2019 export level (5.3 million tonnes). The first year after the introduction of the Section 232 tariffs. Whether this can be considered a negotiating success for the Europeans remains to be seen. In 2018, the EU exported more than 7 million tonnes of steel across the Atlantic.
Agreement in steel and aluminium dispute prevents tariff increase
With this agreement, the United States and the EU have prevented the Europeans’ punitive tariffs from doubling on 1 December 2021. This is likely to have led to a sigh of relief among some US companies in particular. In the European Union, this decision is likely to mean a not inconsiderable increase in steel prices.
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Deal to be officially announced on 31.10.2021
The deal is to be announced today by Commission President Ursula von der Leyen and President of the United States Joe Biden. EU trade chief Vladis Dombrovskis had already announced on Saturday, 30.10.2021, that an agreement had been reached in the steel and aluminium dispute.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
