EU and US continue to disagree on steel trade

EU Trade Commissioner Valdis Dombrovskis said the European Commission wants to avoid the return of Section 232 and EU retaliatory tariffs by reaching a steel trade agreement with the US, but will not sign an agreement that violates global trade standards.

Experts argue that elements of Washington's proposed solution could unfairly discriminate against imports from some countries and violate WTO rules.

"As the EU, we are committed to multilateralism and the rules-based global order," Dombrovskis said. "We want to avoid entering into agreements that clearly violate World Trade Organisation rules."

The parties are making efforts to reach an agreement on the Global Sustainable Steel and Aluminium Arrangement (GSA) before the October deadline. In the absence of an agreement, US and thus EU tariffs will return in December.

"We respect the EU's concerns, but we continue to expect a proposal from their side that meets our high level of ambition and addresses our shared concerns about climate change and excess capacity," said Sam Michel, spokesman for the US Trade Representative.

Dombrovskis declined to speculate on whether he and US trade representative Katherine Tai would extend the truce if an agreement could not be reached by October.