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Trump Trade War - Brazil will have to accept steel quotas - Report

Steel News - Published on Mon, 16 Apr 2018

Image Source: Getty Images
In a meeting with the Brazilian Minister of Foreign Affairs Aloysio Nunes, the US Commerce Secretary Wilbur Ross said that the quickest way for Brazil to become permanently exempt from steel tariffs would be to agree to a voluntary restriction on exports and the establishment of quotas an arrangement similar to the one the US reached with South Korea.

South Korea has signed an agreement pledging not to exceed a quota equivalent to 70% of its average level of exports over the last three years. Additionally, the country has further opened up its market for the importation of American cars. These two measures are what led South Korea to avoid tariffs.

However, the Brazilian government is resisting to agree to the voluntary reduction of exports given the losses that this could lead to in the sector, and it is not considering the possibility of making concessions on other products unrelated to steel.

American Steelmakers import more than 80% of their semi-finished steel products from Brazil. They then transform them into parts that are sold to manufacturers of home appliances and automobiles, among others. It should also be noted that Brazil imports USD 1 billion in US coal in order to make steel.

Source :

Posted By : Amom Remju on Mon, 16 Apr 2018
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