If the suspension of safeguard measures is not extended, failure to reach an agreement will lead to the re-imposition of US Section 232 tariffs and retaliatory measures by the EU on more than $10bn of exports.
It is clear that both sides have made some progress in dealing with the problem of overcapacity in other countries, particularly China. US and EU officials are currently working to reflect this progress in the text.
Under the GSA, the US imposes co-tariffs on carbon-intensive steel and offers preferential market access to agreement members that meet its standards, while reducing overcapacity.
Last December, US Trade Representative Katherine Tai proposed the creation of a club of countries that would increase tariffs on steel and aluminium imports, particularly China.