In a meeting between US President Joe Biden and his Brazilian counterpart Jair Bolsonaro, during the Summit of the Americas in Los Angeles, Biden reportedly told Bolsonaro that he will in principle accept discussions about the barriers in the US for Brazilian slab exports.
According to a source from the Brazilian steel institute, IABr, if the acceptance is confirmed, the next step will be the nomination, by the US authorities, of the officers that will be involved in the discussions. Afterward, a delegation of CEOs from Brazilian steel producers and IABr officers will be sent to Washington to start the negotiations.
Brazil is expected to ask for an increase from the current 3.5 million mt per year quota for steel exports to the US.
Brazil would also ask to transform the current quota from “hard to soft,” as under the hard quota procedures, the country cannot export additional volumes when the quota is completed, even with the payment of the 25 percent tariff, under US section 232.
With the soft quota, additional volumes can be exported, provided that the tariff is paid.
