It is profitable for Ukrainian metallurgists that the US and the EU abolish mutual duties on steel. This was stated by MP Sergei Magera, reports Ministry of Industry .
“This will increase the supply of Ukrainian steel to both the American and European markets. If Ukraine manages to achieve a revision of the Association Agreement and relaxation of restrictions on imports of Ukrainian steel to the EU, domestic steel mills will be able to increase steel exports, "he said.
S. Magera recalled that in 2018, guided by section 232 of the Law on Expanding Foreign Trade, the 45th President of the United States, Donald Trump, signed a decision to introduce import duties on steel. This was done at the request of American steel companies to protect the domestic market.
Experts believe that this decision has done more harm than good to the United States economy. Only metallurgists were the winners, but other industries, especially metal-consuming ones, lost because of the increased prices. In addition, the Trump Administration's decision set off a chain reaction of protectionism. After the US, the EU and other regions have taken similar measures.
Import duties on steel have led to a significant increase in prices for it in the United States. Local industrialists started having problems with a shortage of raw materials and supplies. The problem of steel shortages became especially acute after the United States authorities launched a large-scale program of assistance to businesses affected by quarantine restrictions.
Industrialists have received concessional financing and good orders, but they simply do not have enough raw materials to meet the growing demand. If the problem is not resolved in the foreseeable future, then a new round of crisis associated with a shortage of steel may arise in the American industrial sector.
The Coalition of American Metal Producers and Consumers (CAMMU) and the American Metal Supply Chain Institute (AMSCI) have called on US President Joe Biden to lift import duties on steel. Business representatives believe that this will reduce costs and increase employment in the industrial sector.
“The Biden administration faces a difficult task: how to protect the interests of metallurgists and at the same time solve the problem of the shortage of steel for the American industry? The way out could be the end of the "cold" trade war with the EU through the mutual cancellation of duties. As a kind gesture, the European Union announced its readiness to open the market for more than $ 2.8 billion for American industrial imports. Now the USA has a say, ”Magera notes.