US-EU trade deal to aid decarbonisation: Eurofer

Eurofer says the US-EU steel and aluminium tariff agreement signed over the weekend is “first important step in favour of a globally decarbonised industry”.

“We welcome the announcement of the agreement which could be the starting point of a new, transatlantic partnership tackling global trade distortions and climate change together, addressing the inter-linkage between both,” says Eurofer director general Axel Eggert. “State-supported steel production and capacity built with CO2 intensive technologies contribute significantly to climate change.”

The EU’s steel industry accounts for 0.5% of global direct and indirect CO2 emissions among a global industry total of almost 10%. The agreement is “therefore the first important commitment towards a global, market-based and decarbonised industry even before COP26 negotiations have really taken-off,” Eggert adds.

The US agreed to give EU suppliers a tariff-free volume quota, beyond which the 25% duty will continue to be implemented (see Kallanish passim). The quota volume is to be determined according to historical trading levels. Negotiations had been ongoing since earlier in 2021.

Adam Smith Germany