Officers in the US government have reportedly informed their Brazilian counterparts that, at this stage, there is no political climate to discuss the reduction of barriers to US slabs imports from Brazil.
According to the Brazilian press, the US officers informed that such discussions are not ruled out, but the process could not be started in the short term.
A source from the Brazilian Steel Institute, IABr, previously informed SteelOrbis that the entire process, covering indication of representatives from both sides, negotiations in Washington and conclusions, would last at least until the end of this year, which is in line with the last indications received from the US government officers.
In addition to the expansion of the current tax-free quota of 3.5 million mt per year for the exports of steel products to the US, Brazil is also asking to change the quota grade from today’s “hard” to “soft,” as Brazil is currently forbidden to export steel product to the US when the quota is completed, while with the soft quota, additional volumes can be exported, provided that the 25 percent import tariff is paid.