The EU will not lower its tariffs on US steel and aluminium unless a solution is found for the more than 400 European steel products that are subject to a 50% tariff across the Atlantic, according to the chair of European Parliament’s Committee on International Trade (INTA), Bernd Lange (S&D, German). Permanent rapporteur on EU-US relations, on Thursday 23 October he published his draft report on the European Commission’s proposal to lower European tariffs on a range of US products (see EUROPE 13697/4).
Bernd Lange is maintaining his tariff reduction proposal and the list of affected products but adding a number of conditions.
Steel. First, he believes that the EU cannot remove its tariffs on American steel and aluminium until an agreement is reached between the two blocs to lower Washington’s 50% tariff. “It is not acceptable that these measures taken after the deal (extending the list of products covered by the 50% duty, editor’s note) are still in force”, insisted the rapporteur.
He therefore proposes removing these products from the list covered by the elimination of tariffs (Annex I of the regulation). The European Commission should have the power to put them back on the list if an agreement is reached.
Strengthened suspension provision. Whereas the Commission has provided for a suspension provision in vague terms, Bernd Lange wants to set precise conditions for suspending the EU’s tariff concessions. He clearly states that the regulation must be suspended as soon as Washington imposes a tariff on the EU that exceeds the 15% rate.
The same applies if the United States exercises economic coercion over the EU “in order to prevent or obtain the cessation, modification or adoption of a particular act by the Union or a Member State”.
Safeguard provision explained. The rapporteur also explains the conditions for suspending tariff preferences: a 10% increase in imports of products listed in the annexes must automatically lead to the return of tariffs, until the regulation expires.
Time limit. Finally, for Bernd Lange, it is important to have a clear time frame for the evolution of the agreement. “This legislation is not in line with World Trade Organization rules. And in this turbulent world, we should be clear that we are sticking with the WTO. [...] If there is no clear prospect of a true free trade agreement, we need to stop this exercise”, he explained.
In his draft report, he sets an 18-month deadline for finding a more lasting solution for transatlantic trade relations.
He is also calling for an impact assessment on the reduction in tariffs six months after the regulation’s entry into force and a replacement legislative proposal after twelve months.
See the draft report: https://aeur.eu/f/j3z (Original version in French by Léa Marchal)