United States Trade Representative Katherine Tai told EUROPE she is “optimistic” that the Section 232 steel and aluminium tariff dispute will be resolved by 1 December. She spoke at a meeting with journalists, including EUROPE, in Brussels on 21 October.
EU Trade Commissioner Valdis Dombrovskis, with whom she is negotiating, recalled at the end of September the short time remaining to reach a solution (see EUROPE 12802/15).
“The conversations are intense and that’s a good thing”, she said. The day before, she participated in a working dinner on this subject, including with Commissioner Dombrovskis.
According to a European source, there is still some way to go to reach an agreement. The two negotiators will meet again in London from Thursday to Friday for the G7 Trade meeting. Negotiations on Section 232 tariffs are expected to continue at that time.
Problem of overcapacity
The reason an agreement seems to be so difficult to reach is that positions are still quite clear on both sides about the existence of these tariffs, which were introduced in 2018.
“We need to keep in mind that the reason why Section 232 tariffs are still in place is that they reply to a global overcapacity problem that has ben distorting steel trade for over a decade”, according to Tai.
It is even a measure “that is having a positive effect on industries and workers in the United States”, according to a senior US administration official.
On the European side, it is believed that these tariffs should be abolished. However, Mr Dombrovskis said this summer that he was ready to explore solutions other than the complete lifting of tariffs.
Mrs Tai did not specify whether it is now a question of negotiating tariff quotas, elimination of the tariffs, or some other type of measure. “It is a much more multifaceted negotiation”.
“The question now is: Can we link arms with the EU and recognise that both our markets, companies and workers are being negatively impacted by the global overcapacity problem?” she said. (Original version in French by Léa Marchal)