Despite the unilateral decision made by US president, Donald Trump, in favour of protectionism against imports of steel and aluminium, the EU, US and Japan met up on Saturday 10 March to continue their three party talks that began at the end of 2017, to tackle the question of industrial overcapacity in sectors such as the steel industry and the distortions this is causing.
The EU Commissioner for Trade, Cecilia Malmström, Minister of Economy, Trade and Industry of Japan, Hiroshige Seko, and US Trade Representative Robert Lighthizer launched this tripartite initiative in December 2017 at the WTO Ministerial Meeting in Buenos Aires (see EUROPE 11924). At a meeting in Brussels they agreed to take new measures as part of this ongoing cooperation.
In their statement, the three different parties confirmed, "their shared objective to address non market-oriented policies and practices that lead to severe overcapacity, create unfair competitive conditions for our workers, hinder the development and use of innovative technologies, and undermine the proper functioning of international trade, including where existing rules are not effective”.
To this end, the EU, US and Japan will therefore work closely together to define the basis for the development of stronger rules on industrial subsidies, and collaborate on maintaining existing disciplines, to tackle the issues of market distortion or overcapacity and work towards enforcing existing rules by working jointly on current and new disputes in the WTO.
The three parties also agreed to work towards improving the effectiveness and efficiency of the WTO monitoring function, including the strengthening of notification requirements.
The Europeans, Americans and Japanese will also cooperate on investment screening, both by an exchange of information on their respective frameworks and by the consideration of possible means of coordination for going forward.
They also agreed to further the work of the International Working Group on Export Credits towards a new set of guidelines.
Finally, they will intensify information-sharing on trade-distortive practices and coordinate more closely in the G7, G20 and the OECD and on sectoral initiatives such as the Global Steel Forum on Semiconductors.
To reinforce the WTO rule-making function, the Ministers reaffirmed their commitment to the joint statement on e-commerce adopted in Buenos Aires.
Ms Malmström, Mr Sekō and Mr Lighthizer agreed to meet again in the margins of the OECD ministerial meeting in Paris this June to explore further areas of joint action.
Mr Malmström and Mr Sekō also informed Mr Lighthizer of their deep concerns about Mr Trump's decision to impose further duties on steel and aluminium imports into the US, under Article 232 of the 1962 Trade Expansion Act.
They pointed out that the EU and Japan had been long-term partners in the US in the security domain and asked to be exempted from these measures. (Original version in French by Emmanuel Hagry)