The current situation at the World Trade Organization (WTO) and the challenges posed by reducing CO2 emissions in key sectors such as steel were of concern to the European Union (EU) Trade Ministers in Berlin on Monday (21.09.2020), who concluded an informal meeting.
In this context, one of the central themes was the search for formulas to ensure that the European steel industry is not harmed by competitors with lower standards in terms of measures to reduce emissions.
«We need to find ways to make steel produced in the EU competitive", summed up German Economics Minister Peter Altmaier, whose country holds the rotating presidency of the Union.
Altmaier said there was unity among his colleagues on the need to support the steel industry in the efforts it will have to make to contribute to the European Commission's emissions reduction plans.
"We need to make European steel competitive. Otherwise, with steel produced elsewhere, global emissions will not go down but will go up, which would make no sense," he added.
Among the options being considered is the creation of an EU access tax for products manufactured below certain standards.
European Commission Vice President Valdis Dombrovski said that all possible measures will be taken as long as they are in accordance with WTO rules.
Another topic was the future of the WTO, and Dombrovski said it was important to get the complaints process back up and running.
The United States (US) has not sent its representative to the WTO arbitration court, thus blocking the work of this organization.
However, despite this, the Americans want a representative of the organisation as secretary general, which has generated misgivings in Europe and China.
Altmaier is convinced that the EU countries will unite around a candidate for the post.
Concern over the Mercosur Agreement
During the press conference after the meeting, Dombrovski said that concerns in some EU countries about the free trade agreement with the Southern Common Market (Mercosur) - Brazil, Argentina, Uruguay and Paraguay - regarding ecological standards in Brazil should be taken seriously.
«It is clear that some EU countries have concerns regarding sustainability, especially regarding Brazil, and that is something that needs to be taken seriously," he said.
Altmaier, for his part, said that although the Mercosur issue had not been formally on the agenda, it had been discussed during the dinner prior to the meeting.
"There were different positions. I think that, without opening the whole package, there are some points that we still need to discuss," said Altmaier.
Last week, France, the EU country most critical of the draft association agreement, reiterated its rejection of the pact on environmental grounds and demanded that these South American countries provide more protection for the Amazon and make a greater commitment to the Paris Agreement on climate change.
French President Emmanuel Macron had already threatened to veto it in August 2019 and the independent commission of experts that his government commissioned to prepare a report to analyse its impact backed his position last Friday.
"The level of ambition of this draft agreement is insufficient as a tool for our trading partners to better address the climate problem and the protection of biodiversity, mainly through respect for the Paris Agreement," said the statement released by the French Executive.
At the final press conference, questions were also raised about the danger of a no-deal Brexit, as well as about the agreement with Canada, CETA, which has not yet been ratified by Cyprus.
"We do not know why CETA has not yet been ratified by Cyprus. We believe that there are internal political issues," Dombrovski said.
Regarding the danger of a no-deal Brexit, Dombrovski said that although it is not an attractive option, it must be assumed that it is within the realm of possibility.
Altmaier, for his part, said that EU countries have shown that they are interested in having good relations with the United Kingdom after Brexit but, he added, "that is something that has to be reciprocal."
Source: Reuters
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