Before going to the OECD ministerial meeting in Paris, where she was due to speak to US Commerce Secretary Wilbur Ross and US Trade Representative Robert Lighthizer, European Trade Commissioner Cecilia Malmström reiterated, on Wednesday 30 May, that the EU required a permanent exemption from the US customs duties of 25% on imports of steel and of 10% on imports of aluminium. The EU is currently provisionally exempt from these taxes until 1 June.
"The EU wants to be totally exempt from these duties and wants to commit to a positive transatlantic trade process", she tweeted, referring to the four-point plan proposed by the European leaders to improve the transatlantic trade framework (see EUROPE 12022).
Speaking to the European Parliament on Tuesday, Malmström deemed it unlikely that US President Donald Trump would grant the EU a permanent exemption, saying at best she expected quotas.
"Maybe the agenda will be positive, in other words without customs duties or quotas, but if we are realistic, I don't think we can hope for that. In reality, if the USA decides to refrain from applying the customs duties, I nevertheless expect they will want to impose kinds of quotas on EU exports", she had said.
"The question is to know whether this would involve strict quotas, with a volume limit beyond which no other export is possible, or more flexible quotas that would enable other exports, but with tariffs, (which would be) less damaging for the EU", she added.
Malmström once again warned that the EU would activate re-balancing counter measures immediately. These counter measures have been notified to the WTO and could be put in place from 20 June (see EUROPE 11983, 12029) if Trump decides to impose taxes on European exports of steel and aluminium.
But if Washington chooses to impose quotas, this response would be null and void. "Our future course of action will depend on the nature and severity of the measures imposed by the USA on our exports and on the harm they cause our industry", Malmström said.
At this stage, the US has granted permanent exemption to Australia, Argentina, Brazil and South Korea, but along with quota imports. (Original version in French by Emmanuel Hagry)