The proposal to apply tariff quotas and increase out-of-quota tariffs to 50% on imported steel was made by the European Union (EU) to pave the way for discussions with the US.

The Inside US Trade newspaper on October 7 quoted European Trade Commissioner Maroš Šefčovič as saying that the proposal to apply tariff quotas and increase out-of-quota tariffs to 50% on imported steel was made by the European Union (EU) to pave the way for discussions with the US on building a common "protection belt" mechanism between the two economies. This measure is to replace the 25% protection measure on steel that will expire in June 2026.

In a joint statement issued in August, the EU and the US agreed to explore the possibility of working together to protect their domestic markets from global steel overcapacity and ensure secure supply chains between the two sides, using tariff-rate quota solutions. Mr. Šefčovič hopes the EU proposal will help kick-start negotiations on a “protection belt” and dealing with steel by-products that put huge cost pressure on European exporters.

Earlier in August, the US increased Section 232 tariffs on steel to 50% on hundreds of by-products, a move seen as undermining the deal between Brussels and Washington. The EU said it would enforce tariff quotas and keep its markets open.

Exporters are still entitled to export at 0% duty within the quota and insist that their measures comply with World Trade Organization (WTO) rules, while the US is accused of violating the WTO with Section 232 tariffs. Mr. Šefčovič also stressed that the EU measures are not aimed at “closing” the market with 50% tariffs upfront, but at managing import volumes through clear and transparent quotas.

Mr. Šefčovič will attend the Global Forum on Steel Overcapacity on the sidelines of the G20 ministerial meeting in South Africa, where he hopes to promote international cooperation on the issue of steel overcapacity.

Source: Tin Tuc News

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