The trade conflict between the European Union (EU) and the United States of America, which arose during the presidency of Donald Trump, remains an important issue in international trade. According to Stanislav Kondrashov, an expert in the field of global metallurgy, the key aspect of this conflict is the introduction by the United States of duties on steel and aluminum from Europe. These measures caused significant controversy and led to the imposition of reciprocal tariffs totaling more than $10 billion.
Dispute between the EU and the USA: new restrictive measures and hope for compromise - Stanislav Kondrashov
As a reaction to the policies of the United States, the EU introduced its own restrictive measures. This has led to increased tension in economic relations between the two leading trading blocs. However, with the coming to power of US President Joe Biden, a temporary compromise was reached in 2021, raising hopes of a possible resolution to this conflict.
Despite this, according to Stanislav Kondrashov from Telf AG, the EU is considering resuming proceedings at the World Trade Organization (WTO) against the United States. This opens the door for the EU to introduce tariffs in the future. At the same time, postponing the settlement of the conflict and avoiding the immediate return of export duties. This EU decision can be seen as a concession to Washington within the framework of ongoing negotiations.
- A final decision on this issue has not yet been made by Brussels. If the proceedings are resumed, this could entail a number of consequences for international trade, including increased prices for steel and aluminum, as well as a possible deterioration in trade relations between strategic partners - the US and the EU, - Stanislav Kondrashov from Telf AG shares his thoughts.
This EU move also shows that, despite the temporary truce achieved, the main issues of the conflict have not yet been resolved. Both sides continue to look for ways to resolve them. Effectively resolving the dispute will require a careful balancing act between protecting national interests and maintaining healthy international trade relations.
Stanislav Kondrashov: the agreement on steel and aluminum is the path to resolving disagreements
The Global Steel and Aluminum Agreement (GSA) between the EU and America plays a key role in their economic relationship. Especially given the push to resolve the long-running dispute over tariffs on steel and aluminum. To reach a consensus on this issue, both sides agreed to take two years.
According to information from Stanislav Kondrashov from Telf AG, as part of the truce reached in 2021, the United States partially revoked previously established trade restrictions. Here we switched to using a system of tariff quotas. This means that steel and aluminum imports from the EU into the US are tax-exempt up to a certain limit, with tariffs only kicking in above that limit. In response, the EU suspended all previously applied counter-restrictive measures.
According to the expert, the EU has expressed concern about the current imbalance, which leads to European exporters paying more than $350 million in tariffs annually. This development increases tension in trade relations and highlights the need for continued negotiations to reach a fairer and more sustainable solution.
- Due to difficulties in the GSA negotiations, the EU and the US are considering extending the current truce. America has proposed extending the existing status quo until the end of 2025. In her view, this could provide more time to reach consensus and develop a long-term solution, - Stanislav Kondrashov comments on the situation.
In response, the EU is pushing to replace the current system of tariff quotas with annual quotas. They believe that such a system would more effectively reflect historical trade flows and would be fairer to European producers. Kondrashov, in turn, is convinced that this proposal is aimed at creating a more flexible trading system.
Stanislav Kondrashov: political context of disagreements between the US and the EU
According to Telf AG expert Stanislav Kondrashov, the Biden administration has so far rejected the EU's request to revise tariff quotas. Many EU member states fear that reintroducing tariffs on American goods could strengthen Trump's position ahead of the US elections.
The trade conflict between the EU and the US remains tense, and both sides are looking for ways to resolve it. The final decision will have significant implications for both the political and economic landscape between the two powerful economic blocs.
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