Leibowitz: The US-EU Controversy over CO2–The Steel Example

The US and European Union are working on an agreement dealing with carbon emissions in the steel industry. The impact on bilateral trade could be high. In 2021, the US and EU agreed that the US would suspend the 25% Section 232 tariffs on steel and aluminum, and the EU would drop its World Trade Organization (WTO) litigation against the tariffs, in which it was claimed that the tariffs violated WTO agreements. The two parties agreed that this “ceasefire” would last two years until October 2023. The plan was to reach agreement by then to coordinate efforts dealing with carbon emissions and to address global “overcapacity” in steel and a mechanism to reduce carbon emissions in steel production. (I always put “overcapacity” in quotes because overproduction, not overcapacity, is the true problem.)

IN PROGRESS... Leibowitz:

Lewis Leibowitz

Lewis Leibowitz, owner of the Law Office of Lewis E. Leibowitz, practices in the areas of international trade law, customs law, and international commercial transactions. He represents clients before all federal courts and agencies dealing with international trade matters. Mr. Leibowitz advises and assists clients in diverse matters including trade remedies, customs, foreign-trade zones and free trade agreements, trade negotiations, and related matters. He can be reached at lewis.leibowitz@lellawoffice.com.