International Summit to Address Steel Tariffs Conflict Between US and EU
Entered: September 28, 2023 00:56 / Modified: September 28, 2023 00:56
As tensions over steel tariffs persist, an upcoming international summit is poised to tackle the issue between the United States and the European Union (EU). Scheduled to take place in Washington, USA, on the 20th of next month, the summit aims to reach a resolution before the looming deadline. Despite the separation of two years and four months since the formal summit in Brussels, Belgium in June 2021, leaders are expected to strengthen the partnership, particularly in response to the climate crisis and the pursuit of environmentally friendly industries.
One key focus of the summit will be the war in Ukraine, with leaders uniting to send a strong message of solidarity. However, the impending deadline for the Global Sustainable Steel and Aluminum Arrangement (GSSA), a crucial agreement between the US and the EU regarding steel tariffs, adds urgency to the negotiations. After the 31st of next month, high US tariffs and EU retaliatory measures will automatically resume.
The GSSA, initially discussed in 2021 after President Biden’s inauguration to resolve the trade dispute prompted by the imposition of steel and aluminum tariffs by the US during Donald Trump’s administration, seeks to establish a new system. This system would address carbon-emitting steel production and non-market practices, largely targeting China as the world’s largest steel producer.
While the EU has already implemented Emissions Trading System (ETS) and Carbon Boundary Adjustment System (CBAM) to regulate carbon emissions, the US has yet to adopt a similar framework. Bloomberg has raised concerns regarding potential violations of global trade norms if the new steel tariff agreement directly targets Chinese products. However, both sides are keen to avoid exceeding the negotiation deadline, leaving room for a potential political agreement at the summit or an extension of the negotiation period as an alternative solution.
Amidst ongoing working-level discussions, the inclusion of the ‘steel tariff’ issue in next month’s summit has been confirmed by high-ranking EU officials. As the summit approaches, close attention will be paid to the outcomes of these negotiations, given the potential impact on international trade and cooperation between the US and the EU.
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International
Entered2023.09.28 00:56 Modified2023.09.28 00:56
Conflict over steel tariffs during the Trump era… Foreign media outlets such as AFP reported on the 27th (local time) that if no agreement is reached by the end of next month, there will be a ‘tariff revival’ summit between the United States and the European Union ( EU) will be held in Washington, USA, on the 20th of next month. About two years and four months have passed since US President Joe Biden, EU Summit President Charles Michel, and EU Commission President Ursula von der Leyen held a formal summit in Brussels, Belgium in June 2021.
At this summit, it is expected to discuss strengthening the partnership between the two sides to respond to the climate crisis and transform into an environmentally friendly industry.
It is expected that a strong message of unity will be sent regarding the war in Ukraine. Given that the summit is being held just 10 days before the end of the deadline for negotiating the Global Sustainable Steel and Aluminum Arrangement (GSSA), an agreement involving steel tariffs between the US and the EU, the results of related negotiations are expected to be It is noteworthy.
A high-ranking EU official also said that the issue of the ‘steel tariff’ was included in the discussion at next month’s summit.
GSSA has been under discussion since 2021, the first year of President Biden’s inauguration, to end the dispute between the US and the EU, which was triggered when the US started imposing tariffs of 25% and 10 % on imported steel and aluminum, respectively, starting in 2018 during the administration of Donald Trump. It is an agreement. After the deadline for negotiations, which is the 31st of next month, the high US tariffs and EU retaliatory measures will automatically resume.
In particular, the two sides are said to be discussing the establishment of a new system that would impose tariffs on third-party steel that emits a lot of carbon or engage in non-market practices under the GSSA .
It is mainly aimed at China, which accounts for about half of global steel production. However, differences of opinion between the two sides are known to persist during working level discussions.
The EU operates the Emissions Trading System (ETS) and the Carbon Boundary Adjustment System (CBAM), but the US does not yet have a similar system in place.
In addition, Bloomberg pointed out that the EU is concerned that the new steel tariff agreement could violate global trade norms if it is designed in a way that directly targets Chinese products. However, as both sides agree that exceeding the deadline for negotiation should be avoided, there is a possibility that success can be achieved through a political agreement at next month’s summit or that a second best solution will be raised, such as extending the required negotiation deadline.
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