EUROFER: EU and the U.S. Still Away from Trade Dispute Solution
The lack of agreement poses risks of environmental damage and trade distortions, he noted.
SEATTLE (Scrap Monster): The European Steel Association (EUROFER) noted that EU and the U.S. are still far away from reaching an agreement on settling the bilateral trade dispute and advancing climate protection before the end of the current year, as was previously agreed between the European Commission President Ursula von der Leyen and U.S. President Joe Biden in 2021.
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According to Axel Eggert, Director General, EUROFER, an agreement to tackle overcapacity and carbon intensity in the steel industry just ahead of COP28 would have provided big boost to decarbonisation efforts. The lack of agreement poses risks of environmental damage and trade distortions, he noted.
As per estimates, the non-market excess capacity in global steel industry currently stands at around 600 million tonnes. This is projected to increase by another 150 million tonnes over the next three years. China continues to be the main contributor to overcapacity. Along with China several other countries in the ASEAN, South Asia and MENA region are seen contributing to overcapacity woes.
EUROFER urged the EU and the US to positively conclude the negotiations in order to lead the fight against trade distortions and climate risks.