The Donald Trump administration announced on Monday (31.08.2020/XNUMX/XNUMX) agreements with Mexico and Brazil on the import of steel aimed at protecting the local steel industry.
The head of the U.S. Trade Relations Bureau (USTR), Robert Lighthizer, announced in a release which will reduce the remaining quota for 2020 from 350.000 metric tons to 60.000 tons for semi-finished steel products.
The USTR also announced the "successful conclusion" of negotiations with these two "key trading partners" that have so far removed the threat of US tariffs on Mexican and Brazilian steel.
For his part, Lighthizer praised the "cooperation and constructive commitment" of Mexican Economy Secretary Graciela Márquez in reaching this agreement "despite the unprecedented challenge that the COVID-19 pandemic" poses for both countries.
Prior agreements
Mexico and the United States had begun negotiations on increasing Mexican steel exports after signing a joint declaration on May 17, 2019.
Following the agreement, “Mexico will establish a strict export monitoring regime for these products through June 1, 2021, and will closely monitor shipments during this period,” the USTR said.
In exchange, the United States will maintain the exemption from tariffs on imports of these products from Mexico and both countries have agreed to review the issue next December "in light of market conditions at that time."
As for Brazil, which US President Donald Trump granted a tariff exemption on its steel products in May 2018 and subsequently extended, Washington has reduced the export quota it had previously granted.
Brazil accounts for about 14% of all U.S. steel imports and is its second largest supplier behind Canada.
Source: DW
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