Daily Management Review

European Commission: US duties on car trade with the EU will block dialogue on manufactured goods


Washington’s introduction of restrictions on automotive products trade with the European Union suspend negotiations, which have not yet begun, on the removal of duties on manufactured goods in the trade between them, according to the European Commission.

In January, the EC requested the EU Council to give it a mandate to start negotiations with the United States on tariffs for manufactured goods. This is done in the framework of the EU-US trade agreements of July last year.

Any action by the United States to impose tariffs or quotas on deliveries from the EU of cars or auto parts will negatively affect the work of the EU and the United States in terms of the July agreements, the document says.

"Application of restrictions on the sale of automotive products in any case will lead to suspension of negotiations on industrial tariffs," - the EC materials said.

Last year, the United States introduced additional duties on imports of steel and aluminum products, including those from the European Union. In response, the European Commission introduced the so-called rebalancing measures - additional duties of 25% on the import of certain goods from the United States, totaling about $ 3 billion. They concern, in particular, products from steel and aluminum, agricultural goods, some types of clothing.

At the same time, there is a possibility for the EU of appearance of import duties on automotive products on the part of the United States. At the end of May last year, the US Department of Commerce confirmed that it launched an investigation that could lead to defensive duties on car imports.

It was about the so-called investigation under Article 232. This is an article of the American Trade Expansion Act of 1962, by which Congress gives the executive authority the right to investigate how a particular import affects national security.

The current document of the European Commission in the context of duties and quotas for car production from the US also mentions that they can flow from the "ongoing investigation under Article 232".

At the end of July, the EU and the US reached a number of agreements in the field of trade and decided to create a joint working group to promote them. The group began working in August. The US and the EU also agreed in July to refrain from imposing new duties during the trade negotiations.

 source: reuters.com