SMA and AISI welcome US-EU tariff-free quota arrangement

Philip K Bell, president of the Steel Manufacturers Association (SMA), which represents the USA's electric arc furnace steelmakers, and Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI) have both issued statements.

Mr Bell is pleased that the Biden administration has officially implemented a tariff-free quota arrangement and Mr Dempsey welcomes the president's action.

“The SMA is pleased that the Biden administration has officially implemented a tariff-rate quota (TRQ) under Section 232 on steel products imported from the European Union. This is a result of the negotiations between the US and EU that concluded in October. As steel imports are increasing and capacity utilization has dipped in recent months, it is essential that the implementation, administration and enforcement of this new agreement is done in a manner that continues to support American steel companies and workers.”

“We commend the fact that this agreement includes provisions to help ensure that only steel that is melted and poured in the EU will be eligible for tariff free status. The SMA is also prepared to work with the administration as it conducts a regulatory review of the current 232 exclusions process. For this alternative plan to work, we must be sure that millions of tons of steel products do not find a tariff-free way to our shores when many of these products are produced here in the USA.”

Bell added, “This new agreement also emphasizes the importance of lowering carbon intensity in the global steel industry. This is an area where American steelmakers lead the way by producing the lowest carbon intensity steel in the world by being global leaders in recycling and electric furnace steel production. It is our sincere hope that this agreement will incentivize other countries to take a market-oriented approach to steel trade and sustainable steelmaking.”

Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI), commented: “AISI welcomes the president’s action to implement a tariff-rate quota (TRQ) under Section 232 on steel products imported from the EU in accordance with the agreement reached by the US and EU last October. We are particularly gratified that the president’s proclamation emphasizes that only steel melted and poured in the EU will benefit from this alternative arrangement. Proper implementation and enforcement of the TRQ will be crucial to preventing another steel import surge that would undermine our industry and destroy good paying American jobs.

“We also welcome the president’s direction to the Secretary of Commerce to initiate a regulatory review of the Section 232 exclusions process that will include a focus on enhanced consultations with US companies and labour organizations. AISI looks forward to working with the administration to seek improvements in the exclusions process to ensure that only those steel products truly not available domestically are exempted from the Section 232 measures.

“AISI continues to support the administration’s efforts to negotiate a global arrangement to restore market-oriented conditions in global steel markets and address the carbon-intensity of steel traded around the world. The American steel industry is the cleanest and most energy-efficient of the leading steel industries in the world and we have achieved these results through market-driven competition and without reliance on market-distorting government subsidies. This is a model we urge other nations to adopt as we work together to provide solutions to the global climate crisis and to eliminate global excess capacity in steel.”