Latin American steelmakers are requesting an extension of the deadlines for adhesion to the European Commission's Carbon Border Adjustment Mechanism (CBAM). The Latin American Steel Association (Alacero) has stated that the current conditions will make it difficult for its members to comply with the required requirements for continued export product access to the EU, a major steel trade partner.
The association, along with national steelmaking and metal-producing associations from countries like Brazil, Mexico, Argentina, Colombia, and Ecuador, has expressed concerns about the regulation and implementation of the EC's CBAM. The CBAM is a carbon tariff imposed on carbon-intensive goods entering the EU in line with EU Green Deal legislation, set to be fully effective in 2026. The CBAM transition period is set to start from October 1 this year and continue until December 31, 2025.
However, guidance documents for CBAM were published only between August 17 and 22, and proposed training courses will be announced from October 5. The EC website on the CBAM methodology is also said to be confusing and incomplete, causing increased administrative processes and economic costs, affecting developing regions in an unequal manner.