US and EU discuss steel trade terms

The US and European Union are working to reach a steel trade deal despite carbon regulations and a self-imposed Oct. 31 deadline.

The EU Carbon Boundary Adjustment Mechanism (CBAM) came into force on 1 October. It calls for compliance with the carbon pricing rules set out in the EU emissions trading system. These efforts are aimed at ensuring EU producers do not face competition from imports that are not subject to carbon pricing regulations.

To avoid further development of a trade war between the two organizations following the introduction of Trump-era Section 232 measures, they have launched what they call the Global Agreement on Sustainable Steel and Aluminum (EU-US GSA).

Katherine Tai, the US trade representative, says the parties are working to "discourage trade in emissions-intensive steel and aluminum products that contribute to the creation of global non-market excess capacity by other countries, and ensure that domestic policies support reductions in greenhouse emissions intensity gases in these countries." industry."

According to a study by the U.S. International Trade Commission, which also concluded that U.S. importers bear the cost of tariffs on steel and aluminum.