The European Commission (EC) has announced that it has endorsed the decision of the European Union (EU) to impose additional customs duties on certain US products notified to the World Trade Organization (WTO), as part of the EU's response to the US tariffs on steel and aluminum products.
The commission stated that it expects to conclude the relevant procedure in coordination with the member states before the end of June so that the new duties start applying in July.
According to the EC’s statement, the application of the rebalancing duties is fully in line with WTO rules, and corresponds to a list of products previously notified to the WTO. The WTO Safeguards Agreement allows for a rebalancing corresponding to the damage caused by the US measures with EU exports worth €6.4 billion (2017) being affected. The EU will therefore exercise its rights immediately on US products valued at up to €2.8 billion of trade. The remaining rebalancing on trade valued at €3.6 billion will take place at a later stage - in three years' time or after a positive finding in WTO dispute settlement if that should come sooner.
"This is a measured and proportionate response to the unilateral and illegal decision taken by the United States to impose tariffs on European steel and aluminum exports. What's more, the EU's reaction is fully in line with international trade law. We regret that the United States left us with no other option than to safeguard EU interests," stated Cecilia Malmström, EU Commissioner for Trade.
The imposition of rebalancing duties on a list of selected US products is part of the three-pronged response outlined by the European Commission, that includes the launch of legal proceedings against the US at the WTO (on June 1) and the possible triggering of safeguard action to protect the European market from disruptions caused by the diversion of steel from the United States market. In this regard, an investigation was launched on March 26 and the commission has nine months to decide whether safeguard measures would be necessary. If the investigation confirms the necessity for swift action, such a decision could be taken by summer.