The European Commission “has been notified by the United States Trade Representative of the decision to initiate Section 301 investigations concerning structural excess capacity in manufacturing sectors, including an investigation into the policies and practices of the EU and its member states”, commented spokesman Olof Gill on Thursday 12 March.
“The European Union shares the United States’ concerns regarding structural overcapacity in the global economy. However, the sources of such capacity are well-identified, and they do not lie in Europe”, he added.
On Wednesday 11 March, the US administration announced that it had opened new Section 301 investigations into the practices of 16 major trading partners, to determine whether foreign producers are flooding world markets with subsidised or surplus industrial goods.
Following the US Supreme Court’s resounding decision on reciprocal customs duties, the aim would be to find a more solid legal basis for re-imposing customs duties on various countries (see EUROPE 13813/22).
The 16 target economies are China, the European Union, India, Japan, South Korea and Mexico, as well as Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.
“The EU is a market-driven economy, with open markets and transparent policies. As such, the EU does not consider itself a contributor to structural excess capacity, but rather a partner in addressing global distortions. These challenges are best addressed through cooperation among partners, as is clearly reflected in the EU-US joint statement”, added Olof Gill.
The Commission will carefully examine the details of the investigation and will ask “the United States for clarification on how the opening of this investigation under Article 301 will fit into the framework of the Joint Statement”.
Link to US announcements: https://aeur.eu/f/l5e (Original version in French by Solenn Paulic)