UK Reportedly Planning to Form a Coalition with the EU to Coordinate Tariffs against Chinese Steel
Multiple informed sources told Politico Europe that the UK is pushing for a Western alliance with the EU to curb China's dominance in the global steel market. The UK hopes that coordinated measures will help it avoid new EU tariffs—50% tariffs aimed at protecting EU steel producers. Post-Brexit, the UK found itself subject to EU trade actions and is now seeking exemptions from these measures.
The report said that the proposed solution currently under consideration is for the UK and the EU to form a Western steel alliance—possibly including the US—which would coordinate tariff policies and grant member states preferential tariffs on steel trade.
A senior EU official said earlier this month that the EU "has no choice" but to defend its steel industry and warned that Europe "is deep in trouble due to overcapacity." Nevertheless, the official left the door open for talks with London, urging both sides to sit down and negotiate.
Another EU official, who did not want to be named, pointed out that the concept of a steel "club" has been around for "a considerable amount of time," but now appears "more appealing." They added that the EU and the UK have already cooperated in multilateral forums such as the Global Forum on Excess Steel Capacity. Both sides have agreed to coordinate upcoming carbon tax policies targeting imported steel and other products manufactured through high-pollution processes.
U.S. Trade Representative Griles recently called for stronger coordination against Chinese steel, warning that "current international trade rules are inadequate" and questioning the "political will of foreign members to take action."
Currently, half of the UK's steel exports go to the EU, and the upcoming EU tariffs pose a serious threat to UK producers. Stas, head of "UK Steel," stated that the government "must focus on ensuring the UK secures necessary exemptions within the EU quota and strengthen its own trade defense measures." However, this lobby group leader added that a broader alliance could help address global overcapacity issues and keep large amounts of subsidized imported products out of the UK.
A UK government spokesperson said: "After the EU recently announced this, we will continue to communicate with it. We are also working with international partners to find solutions that address the broader issue of overcapacity."
Source: rfi
Original: www.toutiao.com/article/1847180709537804/
Statement: This article represents the views of the author himself.