Report: Green Trade in Steel Proposal Floated
A proposal by the U.S. to the EU on how to structure trade preferences for clean, fairly traded steel and aluminum says that members of a global climate club would agree that when they exported steel or aluminum to other member countries, if their plants were at or below the importer's plant emission standards, they would enter with no tariffs, but if their plants were above the standards, they would have to pay a carbon tax.
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For countries outside the club, all steel and aluminum exports would be subject to tariffs, Reuters reported Dec. 8.
The story noted that there are a number of hurdles to making this climate club a reality. Measuring the carbon intensity of production is complicated, and the two sides have not agreed on details.
This tariff is a different approach than the EU's carbon border adjustment tax, as well. And, the report noted, establishing such an arrangement would require Congress to pass a law, and it would be very hard to get the House, which will have a Republican majority, to move legislation to suit the White House.
The EU and the U.S. agreed to reach a solution on trade in steel and aluminum by Oct. 31, 2023 (see 2210130068).