Calls for “ambitious proposals” to address aluminium and steel sustainability issues

With the October deadline approaching for delivery of the Global Arrangement on Sustainable Steel and Aluminum, US Trade Ambassador Katherine Tai has urged the US and EU to generate “ambitious proposals” to address concerns on carbon intensity and non-market excess capacity.

Speaking with European Commission executive vice president Valdis Dombrovskis on 20 July, Ambassador Tai spoke about the work that must be completed in order to fulfill the previously-agreed deadline of October 2023 for the Global Arrangement.

She stressed the importance of both sides generating ambitious proposals in order to address shared concerns on carbon intensity and non-market excess capacity in the steel and aluminium industries. Recognising the challenge this initiative poses to both sides, Tai noted the need to work “at the deep level of trust, commitment and confidence that characterises the best of the partnership between the US and European Union”.

The Ambassador underscored that, with the October deadline approaching, the US and EU need to deliver a “high-standard” agreement worthy of the two years that both sides will have spent in negotiations.

The meeting followed the publication of a joint letter addressed to Tai and Dombrovskis from The Aluminum Association and European Aluminum urging policymakers to reach a deal by October.

“The US aluminum industry has announced more domestic investment over the past two years than the prior several decades combined,” said Charles Johnson, president & chief executive of the Aluminum Association. “That’s why it is so important that the US Government reaches a politically sustainable arrangement with the EU to support continued growth of low carbon aluminum production here at home. We appreciate the work of Ambassador Tai and the full USTR team on this issue and look forward to continued engagement.”

The letter underscored the need for the Global Arrangement to address both decarbonisation and market behaviour to best support the aluminium industry on both sides of the Atlantic.

“As trade relations deteriorate worldwide, any restrictions among long-standing and responsible partners will only harm aluminium producers worldwide. A well-designed [Global Arrangement] agreement should recognise and incentivise the low carbon, market-driven aluminium industries in [Global Arrangement] party countries ensuring a level-playing field within the GSA as regards climate-related costs,” the letter reads.

“Further, the agreement should set reasonable targets and benchmarks for non-party countries so that they can join the agreement, or face measures for high carbon, non-competitive imports. This will ensure that non-party countries do not jeopardise aluminium production in [Global Arrangement] member countries.”