15 June, 2024 by

The European Aluminum and EUROFER, representing the aluminum and steel sectors in Europe, have issued a joint statement emphasizing the urgent need for progress in the Global Arrangement on Sustainable Steel and Aluminum negotiations. They highlight the existential threat posed by non-market excess capacity and the challenges of decarbonization, urging aligned policy approaches among like-minded economies.

Non-market excess capacity has persisted and even increased since negotiations began in October 2021, especially due to China's state-supported capacities expanding into other regions like Southeast Asia, India, and the Middle East. These market distortions depress prices and elevate costs, threatening the viability of the aluminum and steel industries. 

To address these issues, the statement calls for new trade tools, such as a common tariffication regime and an import monitoring system. These measures would help tackle non-market excess capacity and prevent circumvention through downstream value chains. The high costs of the green transition further pressure the competitiveness of these sectors, making it crucial to establish common ground on production costs to reduce global carbon emissions. 

The associations urge policymakers to prioritize addressing non-market excess capacity and to intensity negotiations on the climate pillar. With elections looming, they call for a meaningtul agreement to be reached soon to benefit both the EU and US industries. Additionally, they emphasize that a substantial EU-US Global Arrangement could resolve the long-standing Section 232 Tariffs dispute, which has adversely impacted European industries. 

Paul Voss and Axel Eggert, Directors General of European Aluminum and EUROFER respectively, stress the importance of securing a significant agreement promptly to ensure sustainable and competitive industries on both sides of the Atlantic. The associations remain committed to supporting turther negotiations and collaborative efforts to achieve this critical agreement.

Read more: Ind-Ra: Indian steel demand to rise by 9-12 percent in FY 2024-25

Vietnam Steel by Hoa Sen Group


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