Washington: The US has submitted an initial offer to the European Union (EU) that involves a tariff-rate-quota system to resolve a three-year dispute over steel imported from the bloc, according to a media report.
Officials from the two sides will discuss the issue at the inaugural meeting of the US-EU Trade and Technology Council on September 29 in Pittsburgh, Xinhua news agency quoted the Bloomberg News report as saying on Friday.
The report added that the US initial offer pertained to steel only and didn’t include aluminium shipments.
Tariff-rate quotas allow countries to export specified quantities of a product to other nations at lower duty rates, but subject shipments above a pre-determined threshold to a higher duty, it said.
The proposal came after US and EU leaders in May “agreed to chart a path that ends the WTO (World Trade Organization) disputes following the US application of tariffs on imports from the EU under section 232”.
The European Commission has confirmed with US counterparts that it wants to find a solution before December 1, according to Bloomberg.
Citing national security concerns, the administration of former President Donald Trump unilaterally imposed a 25 per cent tariff on steel imports and 10 per cent tariff on aluminium imports in 2018, under Section 232 of the Trade Expansion Act of 1962, drawing strong opposition domestically and abroad.
Failing to reach a deal with the Trump administration, the EU took the case to the WTO and imposed retaliatory tariffs on a range of American products.
