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US and EU Strike Clean Steel and Aluminum Deal

5 November 2021


On 31 October 2021 the United States and the European Union announced they will begin negotiations on the world’s first carbon-based sectoral arrangement on steel and aluminum. Through the Global Arrangement on Sustainable Steel and Aluminum, the EU and US will work to limit dirty steel and aluminum from entering their markets and address the overcapacity of steel and aluminum in the international market caused by countries like China.

The US and EU encourage the participation of any interested country that wishes to join and meets criteria for reducing trade in high-carbon steel and aluminum products and restoring market orientation.

Negotiations on the Arrangement will begin as soon as possible and conclude in two years. As such, many specifics of the Arrangement are not yet determined.

This announcement comes a day after the US and EU struck a deal on the US Section 232 tariffs on steel and aluminum. The US will maintain its 25% tariff on steel and 10% tariff on aluminum, but effective 1 January 2022 will allow “limited volumes” of the products from the EU into the US duty-free, said Commerce Secretary Gina Raimondo. In return, the EU will drop retaliatory tariffs introduced in June 2018 on goods from the US. The EU and US have also agreed to pause their respective WTO cases against each other.

The deal puts an end to a trade dispute that began after President Trump established the Section 232 tariffs in 2018, removing a significant thorn in the side of transatlantic relations.

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Mary Hellmich

Mary Hellmich

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Co-lead of the Transatlantic Climate Bridge team at adelphi