Global Steel and Aluminum Overcapacity Necessitates a Coordinated U.S.-EU Response: AAM Statement

Tags Trade

Washington, D.C. — The United States and the European Union (EU) announced Friday that they will continue to negotiate in the coming weeks a steel and aluminum arrangement that addresses unfair trade practices and global overcapacity while also creating incentives for cleaner production. Talks began in October 2021, and both sides have agreed to continue discussions through the end of the year.

Alliance for American Manufacturing President Scott Paul said: 

“The United States and the European Union must continue working on an enduring solution to take on global steel and aluminum overcapacity as well as tackle global production with greater emissions. It’s an issue that is fundamental to U.S. national and economic security, and it’s vital that we get this right. 

“China and other countries with state-driven production have distorted the global steel and aluminum market, causing significant harm to American workers while putting our nation’s economic and national security at risk. More damage would be catastrophic.

“The Biden administration has rightly sustained the Section 232 actions to fight back against market distortions. Domestic producers have been given valuable time to stabilize after years of massive market manipulation. American steelmakers are investing in modern facilities, and they are hiring the next generation of steelworkers, too.

“But the underlying global challenges have only gotten worse. It is essential that the United States maintain the Section 232 actions until a strong arrangement can be made with the EU. Under no circumstances should we veer back into the failed policies that weakened America’s national security and created supply chain vulnerabilities. 

“The United States is not alone in facing the challenges posed by global overcapacity, which is why it is important that the U.S. and the EU work together to take on the predatory trade practices that led to this global crisis in the first place. “The EU continues to enjoy generous access to our market. We expect Brussels to join Washington in aggressively challenging overcapacity and unfair trade practices. This is an endeavor worthy of additional time.”