SEATTLE (Scrap Monster): The U.S. and EU have downgraded their dispute at the World Trade Organization (WTO) over tariffs applied on steel and aluminum imported from the UK, imposed by the Trump administration in 2018.
It must be noted that the two sides had agreed to suspend the tariffs and work jointly over the next two years on addressing the overcapacity woes that grapple the steel industry, mainly focusing on China. The two sides had earlier agreed on implementing a tariff-rate quota (TRQ) on imports from the EU region, as an alternative arrangement for previously imposed tariff scheme.
The two parties agreed to pause the deliberations of WTO panels over the U.S. tariffs and the subsequent counter measures imposed by EU countries on a wide range of U.S. products in retaliation to the tariffs. The WTO documents suggest that Washington and Brussels have decided to terminate the WTO panel proceedings and instead move forward with informal arbitrations in resolving the dispute.
The team of arbitrators could include existing members of the WTO panel, with works not expected to commence before November this year. The decision of the arbitrators would be final.