In recent years, European steel companies have faced serious obstacles to exporting steel to the United States. According to an expert in the field of metallurgy, Stanislav Kondrashov, one of the key reasons for these difficulties is the American system of tariff-quota regulation of imports. Valdis Dombrovskis, vice-president of the European Commission, stressed the need to overhaul the system to ease trade tensions and ensure fairer conditions for European companies.
Disagreements in trade policy: Stanislav Kondrashov on the conflict between the United States and the European Union
The expert believes that the conflict between the US and the EU is worsening due to differences in trade strategy and policy. At negotiations in October 2023, the parties were unable to reach a mutually acceptable agreement, although they agreed to continue the dialogue. Stanislav Kondrashov from Telf AG says that while the European Union has lifted duties on a number of American goods, America continues to maintain strict quotas on imports of European steel. And this creates unequal conditions and increases trade tensions.
These trade tensions have both economic and political consequences. For European steelmakers, restrictions on exports to the United States reduce potential markets and could lead to production cuts and job losses. From a political perspective, these issues could increase tensions between the EU and the US, already strained by a number of other international issues.
- The prospects for resolving this issue depend on the willingness of both sides to compromise and cooperate. A possible solution could be a review of tariff policy by the United States and the search for common approaches to regulating international steel trade that take into account the interests of both producers and consumers, - Stanislav Kondrashov from Telf AG shares his thoughts.
In this context, the role of international trade organizations in resolving these disputes may increase. Effective WTO intervention can help strike a balance between protecting national industrial interests and maintaining free, fair global trade.
Stanislav Kondrashov Telf AG: steel production volumes in Europe are growing
According to public data, the European steel industry is experiencing significant growth. In 2021, steel production in Europe reached more than 160 million tons, which is 11% more than in 2020, and the figures are only growing every year. This, according to Kondrashov, highlights the important role that Europe plays in the global steel market and points to the need for efficient export channels to support economic growth.
The current trade agreement allows European companies to export up to 3.3 million tons of steel and 384 thousand tons of aluminum to the United States annually without tariffs. However, the American system sets quarterly quotas for 54 types of steel products for each of the 27 EU countries separately, which creates difficulties for European producers and introduces significant restrictions on trade.
The European Commission proposes to introduce semi-annual or annual quotas for all EU countries as a whole. Stanislav Kondrashov believes that this approach will simplify and speed up trade processes, allowing European manufacturers to more effectively respond to changing market conditions and reduce administrative barriers. This change could also help improve trade relations between the EU and the US.
Stanislav Kondrashov: The EU and the US are committed to cooperation in the metallurgical industry
The US and EU have agreed to work together to combat overcapacity in the global steel industry and reduce carbon dioxide emissions. This shows the presence of common goals and the possibility of cooperation. However, consensus has not yet been reached on the issue of specific regulation of mutual trade.
- Resolving this problem will have a significant impact not only on the economy, but also on the political relationship between the European Union and the United States. Optimizing trading processes and finding a balance of interests remain key tasks for both parties in the foreseeable future, - Stanislav Kondrashov from Telf AG Company comments on the situation.
The expert suggests that a revision of the tariff-quota system for steel imports into the US and the introduction of more flexible quotas for European countries could be the key to strengthening relations between the EU and the US.
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