EU Expects to Be Excluded From Steel, Aluminum Tariffs; Preparing for Possible Import Surge
European Commission officials said during March 14 speeches that the EU deserves to be exempt from new tariffs on steel and aluminum. "We expect that the EU as a whole will be excluded as a key political, security and economic partner that trades fairly with the US," said European Commission Vice-President for Jobs, Growth, Investment and Competitiveness Jyrki Katainen during the European Parliament plenary debate. The EU will continue work to resolve the overcapacity issue and, in the meantime, "we sincerely hope that the process of exclusion on EU steel and [aluminum] exports from the scope of U.S. measures will be expedited, transparent and smooth," he said. "We believe that our exports do not cause any threat to U.S. security."
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Cecilia Malmstrom, European Commissioner for Trade, would like to see more details on the exclusion process, she said. "We are in contact with U.S. counterparts to obtain more clarity as soon as possible and we have been told that the [U.S. trade representative] will publish very soon on their website a more detailed outline of the procedures for the exemptions." The EU will be ready if it's not excluded, with a "firm and resolute, but proportionate, response," she said, according to prepared remarks. "We are continuing the preparations to ensure that we can respond in line with the [World Trade Organization] rules, in the event that the EU would not be excluded from the scope of the Section 232 measures."
The EC is also considering other effects of the tariffs, such as "potentially significant trade diversion," Malmstrom said. The U.S. has said it could see a major reduction in steel imports after the tariffs are in place, so "there could be a surge of steel or aluminium imports into the EU." In preparation, the EC is working on its own safeguards "while maximizing our openness," she said. "We urge our trading partners to do likewise. We do not want to encourage further closing of steel and aluminium markets."
Malmstrom took issue with the use of the national security basis for the tariffs. "We believe that this US measure is a safeguard in disguise; that the security exception that does exist in the WTO, but which is meant to be used for wartime, is misused." She also addressed some general concerns on tariffs recently mentioned by President Donald Trump. "Yes, the EU has tariffs on cars vis-à-vis the U.S. and other countries," she said. "But the U.S. has higher tariffs on other items. For instance, there is a 25% tariff on trucks and pick-ups. You cannot discuss tariffs unilaterally -- we try to take away tariffs in trade agreements. When there are no agreements, these are tariffs. And they are not only vis-à-vis the U.S.; they are for all countries with whom we do not have trade agreements, so that's why you cannot negotiate tariffs individually. It's part of a bigger picture."