The European Union (EU) and the United States have agreed to put aside their dispute over steel and aluminum, announced this Saturday the vice president of the European Commission (EC) and head of Trade, Valdis Dombrovskis.
“We have agreed with the United States put on hold our trade dispute over steel and aluminum and launch a cooperation in relation to a global agreement on sustainable steel and aluminum, “Dombrovskis said yesterday through his Twitter account.
Aluminum reaches its highest in 13 years, due to energy shortages and lower production in China
The President of the European Commission (EC), Ursula Von der Leyen, and the president of the United States, Joe biden, today signed the agreement to suspend the tariffs that they considered “a big step forward in bilateral relations“ and in the “fight against climate change”.
President Biden noted that the agreement helps “reestablish transatlantic trade flows”, and addresses shared challenges related to climate change, while it ensures a strong and competitive US steel industry for decades to come and creates jobs. “We can throw away the idea that we can’t grow our economy and support American workers while tackling the climate crisis. We can do all three,” he argued.
The US will impose tariffs on products of the European Union from October 18
The trade relationship between the European Union and the United States deteriorated during the term of former US President Donald Trump, particularly as a result of the tariffs of 25% on Community imports of steel and 10% on aluminum.
To the measures imposed by Trump, lthe EU responded with its own batch of tariffs to various American products, including the Bourbon whiskey, peanut butter, cranberries, or orange juice.
The two blocks had been trying for months to reach an understanding to resolve the dispute over steel and aluminum.
Contacts intensified after last June the EU and the United States reached an agreement on the battle for illegal public aid to the US aircraft manufacturer Boeing and the European Airbus, the longest dispute in the World Trade Organization (WTO).
WTO authorizes Europe to tariff US products for aid to Boeing
They both agreed then suspend for five years its compensatory duties, valued at up to 11,500 million euros.
In this way, both partners will focus on negotiate a new global trade agreement to address global steel and aluminum overcapacity originating mainly from China, which in recent times has commercialized its cheap steel in international markets, directing it among others to countries such as the US, through Europe, something that Washington considers penalized the competitiveness of its industry.
Von der Leyen, what confirmed that the complaint that the community club had filed against Washington with the World Trade Organization is on hold (WTO) in the wake of US steel and aluminum tariffs, it thanked Biden for removing them “down to previous trade levels.”
“This will alleviate a large part of the existing trade nuisances. Allow the transatlantic trade in steel and aluminum between us to return to the levels recorded before these tariffs were established,” he noted.