US and EU reached steel and aluminum tariff quotas through TRQ

23/01/2023

The United States and the European Union recently reached an agreement on steel and aluminum tariffs. The agreement, which was signed by the Office of the United States Trade Representative (USTR) and the European Commission, establishes a tariff-rate quota (TRQ) for steel and aluminum imports from the EU.

Under the TRQ, the United States will allow a certain quantity of steel and aluminum imports from the EU to enter the country duty-free. The annual quota for steel is 3.3 million metric tons, and the annual quota for aluminum is 18,000 metric tons.

The agreement also includes provisions for addressing steel oversupply. The two sides agreed to work together to monitor steel and aluminum production and trade, and to take action if necessary to prevent oversupply from causing market disruption.

The agreement is a significant step forward in resolving the steel and aluminum trade dispute between the United States and the EU. The TRQ will provide much-needed relief to US businesses that rely on steel and aluminum imports from the EU. The agreement also sends a signal to other countries that the United States is committed to working with its trading partners to address trade challenges in a constructive and mutually beneficial way.

In addition to the TRQ, the agreement also includes a number of other provisions, such as:

  • A commitment to expand cooperation on trade remedies and customs matters.
  • A commitment to meet regularly to consult and develop additional actions to address non-market excess capacity in the steel and aluminum sectors.

The agreement is a positive development for both the United States and the EU. It will help to stabilize the steel and aluminum markets, and it will create a more predictable and stable environment for businesses on both sides of the Atlantic.

The agreement is also a sign of the strength of the US-EU relationship. The two sides have a long history of cooperation on trade, and they are committed to working together to address common challenges. The agreement on steel and aluminum tariffs is a testament to that commitment.

CBAM