Commerce

On-The-Report Press Name by Nationwide Safety Advisor Jake Sullivan, Commerce Secretary Gina Raimondo, and U.S. Commerce Consultant Katherine Tai on a U.S.-EU Settlement on Metal and Aluminum Tariffs

By way of Teleconference

(October 30, 2021)

7:41 P.M. CEST

MR. MEAGHER:  Thanks for becoming a member of us for this essential name previewing a significant settlement with the European Union.  We could have two parts of the decision — an on-the-record portion and an on-background Q&A. 

Becoming a member of us for the on-the-record feedback are Nationwide Safety Advisor Jake Sullivan, Commerce Secretary Gina Raimondo, and U.S. Commerce Consultant Katherine Tai.

[…]

The contents of this name will probably be embargoed till the conclusion of the decision.  I’ll go over these floor guidelines on the finish.  However for now, I’ll hand it over to our Nationwide Safety Advisor, Jake Sullivan.

MR. SULLIVAN:  Thanks, Chris.  And thanks, everyone, for becoming a member of.  And greetings from Rome, the place the U.S. and the EU have concluded an settlement with respect to metal and aluminum tariffs and the retaliatory tariffs imposed by the EU.  That is actually the work of Secretary Raimondo and Ambassador Tai and their groups with assist from the White Home.

So I’m going to allow them to discuss by the specifics of the deal and the way we received right here, after which, clearly, their groups who will probably be out there to take questions on background, as Chris laid out.

The explanation I needed to only say a number of phrases on the prime is to set slightly little bit of the bigger context right here and simply to underscore that not solely does at the moment’s deal take away one of many largest bilateral irritants within the U.S.-EU relationship, it really transforms it right into a joint ahead progress on two central challenges.

The President has mentioned that considered one of his — the important thing targets of his presidency is to reveal that democracies can ship outcomes for his or her individuals, particularly working individuals, and clear up the challenges of the twenty first century.  And two of the best of these challenges are the specter of local weather change and the financial risk posed by unfair competitors by China. 

Immediately’s cope with the EU delivers on that promise by making headway on each fronts.  The settlement, in the end, to barter a carbon-based association on metal and aluminum commerce addresses each Chinese language overproduction and carbon depth within the metal and aluminum sector; it reveals that we will clear up the local weather disaster whereas on the identical time higher defending our staff; that we don’t have to select between local weather or the economic system — that the trail to local weather progress is thru guaranteeing good jobs.

Immediately’s deal is proof of this in movement and proof that we will rally key likeminded companions to affix us.

So we’re excited concerning the alternative to put in writing the principles of the twenty first century with our companions and allies.  We’re dedicated to creating a future carbon-based association open to any nation that shares our dedication to restoring market orientation and selling commerce and low-carbon metal and aluminum.

And so we not solely have an instantaneous, near-term resolution, we even have an bold endeavor forward of us to barter this new association.

And with that, let me flip it over to Secretary Raimondo.

SECRETARY RAIMONDO:  So, good afternoon and good night.  And thanks, Jake.  As Jake mentioned, this can be a essential and, in some methods, historic announcement. 

Originally of the administration, the President requested Ambassador Tai and me to work with the EU to discover a resolution to the 232 tariffs disputes however to do it in a approach that may, as Jake mentioned, rebuild our alliances with the EU, shield America’s metal and aluminum staff, and transfer us meaningfully ahead to attaining our local weather targets.

And at the moment, we’re right here to announce a deal that does precisely that.  We’ve reached an settlement with the EU which maintains the 232 tariffs however permits restricted volumes of EU metal and aluminum to enter the U.S. tariff-free. 

We’ve additionally agreed to work along with the EU to make use of commerce instruments to battle world extra capability of metal and aluminum, to handle carbon depth, which is — set an enormous milestone in our battle towards local weather change.

Earlier than I take a second to undergo the main points, I do need to thank our counterparts within the EU, significantly President von der Leyen and my counterpart, Government Vice-President Valdis Dombrovskis, for his or her partnership.  This can be a very tough negotiation.  It was arduous, sophisticated.  Each side argued forcefully however respectfully.  And I need to thank them for his or her partnership, as a result of it was a really profitable negotiation, and we agreed on a approach ahead for learn how to face our shared problem, which is world extra capability, primarily by China.  And it was in our mutual curiosity to search out compromise. 

The deal that we struck achieves the next targets:  First, it, as I mentioned, protects American metal and aluminum industries, (inaudible) nationwide safety and our metal and aluminum staff from the surplus capability pushed by China dumping metal into our markets.

For a lot too lengthy, China was routing its low cost metal into the U.S. by way of Europe and different markets, which drove down costs and made it primarily inconceivable for America’s metal and aluminum business to compete and, after all, in so doing, hurting the business and hurting our staff. 

So, at the moment’s settlement allows us to permit restricted volumes of metal to enter the U.S. tariff-free whereas nonetheless defending America’s metal business by guaranteeing that every one metal getting into the U.S. by way of Europe is produced totally in Europe.

Secondly, this settlement is important in that it’ll scale back prices for American producers and customers.  We clearly all know that metal and aluminum are in a spread of merchandise, from automobiles to vans, to washing machines and different family home equipment and development supplies.

Previously 12 months, the price of metal for producers within the downstream industries has greater than tripled.  And I believe each American is seeing that.  , each American is seeing will increase in automotive costs, will increase in home equipment, will increase in quite a few totally different merchandise.  And we’ve additionally — we’re additionally experiencing unprecedented provide chain disruption.  And we absolutely count on this settlement will present aid within the provide chain and drive down value will increase as we carry the 25 % tariffs and enhance quantity.

After all, it’s additionally good for the American producers who use metal and aluminum of their product.  And we imagine it would assist them decrease their prices, (inaudible), and create extra jobs. 

(Inaudible) and thirdly, on this deal we have been capable of attain an settlement whereby the EU will drop their retaliatory tariffs.  As lots of you already know, the EU was set to extend tariffs on December 1st to 50 % on iconic American firms, like Harley Davidson and the Kentucky bourbon business.  I don’t suppose we will underestimate how crippling a 50 % tariff is.  A enterprise can’t survive with a 50 % tariff.  There’s 1.7 million People supported by the distilled spirits business, 5,600 manufacturing staff at Harley Davidson.  And all of their jobs are safer at the moment due to this deal.

Lastly and importantly, as Jake indicated, this deal creates a framework by which the U.S. and EU comply with take carbon depth under consideration in future negotiations.  It’s the first-of-its-kind deal.  And it implies that the U.S. and EU, you already know, each produce metal and aluminum that’s considerably cleaner — i.e. much less carbon intensive — than the metal produced in China.  And China’s lack of environmental requirements is a part of what drives down their value, nevertheless it’s additionally a significant contributor to local weather change.

So, this can be a vital achievement by the President.  By agreeing to the framework, we’re defending American jobs.  We’re exhibiting clear manufacturing might be good for enterprise and customers.  We’re serving to the planet.  And we’re assuaging a few of the challenges now associated to elevated prices and provide chain disruption.

So, it’s an thrilling day, and I’m grateful to (inaudible) to Ambassador Tai.

AMBASSADOR TAI:  Thanks a lot, Gina and Jake.  Thanks all for becoming a member of the decision.  It’s been an intense few weeks of negotiations as we work to succeed in this association.  However as Secretary Raimondo simply mentioned, this can be a nice day for American staff, American producers, our alliance with the European Union, and our joint dedication to battle local weather change.

Immediately’s announcement delivers on President Biden’s imaginative and prescient to show the web page on previous disputes and start a brand new chapter of enhanced transatlantic relations. 

Earlier this 12 months on the U.S.-EU Summit, we resolved the Boeing-Airbus dispute over plane subsidies.  That framework strengthens our respective plane industries, helps safe good jobs for staff on either side of the Atlantic, and lays the groundwork for elevated cooperation on shared challenges posed by China and different non-market economies.

The summit additionally launched the U.S.-EU Commerce and Know-how Council, which held its inaugural assembly in September and offered a discussion board for the USA and European Union to strengthen our cooperation on key world commerce, financial, and expertise points.

These actions all assist to create momentum and the belief vital for reaching this settlement, which is able to assist make sure the long-term viability of our metal and aluminum industries, the communities they assist, and, most significantly, the employees in these industries on either side of the Atlantic.

Earlier than we get to your questions, there are a number of elements of the settlement that I need to spotlight.  Along with the EU eliminating the retaliatory tariffs towards the U.S. that Secretary Raimondo simply talked about, we’ve got additionally agreed to droop the WTO disputes towards one another associated to the 232 actions.  The settlement additionally addresses world overcapacity from China and toughens enforcement mechanisms to forestall leakage of Chinese language and different unfairly traded metal and aluminum into the U.S. market.

Going ahead, the U.S. and the EU will analyze the quantity of metal and aluminum imports from the EU every year, share info and finest practices on commerce treatments, and make sure that merchandise from non-market economies don’t profit from the association. 

Lastly, this deal is a major win on considered one of President Biden’s prime priorities: combating local weather change. 

President Biden has been clear that we should discover new methods to deal with the rising disaster and create jobs.  As a part of the decision, the U.S. and the EU have agreed to barter the first-ever carbon-based association on metal and aluminum commerce, and create higher incentives for lowering carbon depth throughout modes of manufacturing of metal and aluminum produced by American and European firms. 

We all know our allies and buying and selling companions agree.  That’s the reason we are going to create a world association to encourage likeminded economies that share our collective dedication to market-based ideas and addressing the carbon depth of those industries. 

Earlier than I shut and switch this again to our moderator, I need to thank European Fee Government Vice-President Valdis Dombrovskis.  Within the final month alone, he and I’ve met with or spoken to one another greater than 10 instances.  And the workers on either side have labored across the clock to get this settlement throughout the end line. 

This renewed cooperation and shared dedication to creating sturdy commerce coverage that places staff entrance and heart will result in higher prosperity for our residents on either side of the Atlantic and world wide. 

Thanks very a lot.

MR. MEAGHER:  All proper.  Thanks to the three of you for taking the time this night.

END

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