The EU and the US want an agreement on sustainable steel and aluminum

European Commission President Ursula von der Leyen and US President Joe Biden agreed on Wednesday to launch discussions on a global agreement on sustainable steel and aluminum. According to a report from the European Commission, this is a new milestone in the transatlantic relationship and in the EU's and US efforts to achieve the decarbonisation of the global steel and aluminum industries in the fight against climate change. The two leaders also agreed to suspend bilateral disputes in the World Trade Organization (WTO) over steel and aluminum. The Commission recalled that steel and aluminum production is one of the largest sources of carbon emissions in the world. "In order for steel and aluminum production and trade to be sustainable, we need to address the industry's carbon footprint, along with problems of overcapacity. The global agreement will seek to ensure the long-term viability of our industries, support low carbon and aluminum production and trade. The agreement will be open to all like-minded partners," according to the European Commission's opinion. At the same time, the European Commission stated that following the announcement by the United States that it would abolish tariffs on exports of steel and aluminum from the EU, the Euroblock will take steps to suspend its retaliatory countervailing measures against the United States. Both parties have agreed to suspend their WTO disputes on this issue. "Relieving another source of tension in the transatlantic trade partnership will help industry on both sides. This is an important milestone for our renewed, forward-looking agenda with the United States," von der Leyen said. According to the EC's Vice-President for Trade, Valdis Dombrovskis, efforts to settle the WTO trade dispute and work together on a new global agreement on sustainable steel and aluminum will provide both parties with "space to relax" and find a comprehensive solution to global overcapacity.