The European Commissioner for Trade, Valdis Dombrovskis, held further talks with the US Trade Representative, Katherine Tai, on the fringes of the G20 Trade Summit in Jaipur. The two sides are still seeking to conclude the Global Arrangement on Sustainable Steel and Aluminium (GSA) by October 2023.
“We have agreed to intensify discussions with a view to reaching an agreement by the autumn”, said Mr Dombrovskis. However, this prospect seems to be receding, according to several European sources, who are expecting the October 2023 deadline to be postponed instead.
The EU and the US have different visions of how to green steel and aluminium production. A pricing system for the carbon emitted by the production of these metals and imposed on imports would be ideal for the EU, along the lines of its Carbon Border Adjustment Mechanism (CBAM). For its part, Washington has proposed a sustainable steel club, with reduced steel tariffs for members.
If no agreement is reached by 31 October, the question of extending the suspension of the respective tariffs on steel and aluminium will come up.
Valdis Dombrovskis and Katherine Tai also discussed the agreement on critical minerals that the EU and the United States hope to conclude soon. (Original version in French by Léa Marchal)