ANNOUNCEMENT 18 May 2018
In May 2018, the European Union notified the World Trade Organization's Council for Trade in Goods of the proposed suspension of concessions and other obligations referred to in paragraph 2 of Article 8 of the agreement on Safeguards following tariff increases by the United States on certain goods.
In June 2018, the European Union imposed import duties on 182 goods from the United States in reaction to the US steel and aluminium import duties.
NUMBER OF INTERVENTIONS
WTO, Council for Trade in Goods - Committee on Safeguards - Immediate notification under article 12.5 of the Agreement on Safeguards to the Council for Trade in G[...]on Safeguards - European Union, Document Number G/L/1237 ; G/SG/N/12/EU/1, issued on 18 May 2018: https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-DP.aspx?language=E&CatalogueIdList=245263,245266,245272,245286,245249,245254,245188,245212,245213,245214&CurrentCatalogueIdIndex=4&FullTextHash=&HasEnglishRecord=True&HasFrenchRecord=False&HasSpanishRecord=False
Official Journal of the European Union, Commission Implementing Regulation (EU) 2018/886 of 20 June 2018, published on 21 June 2018: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.158.01.0005.01.ENG&toc=OJ:L:2018:158:TOC
European Union, press release of 20 June 2018, EU adopts rebalancing measures in reaction to US steel and aluminium tariffs: http://europa.eu/rapid/press-release_IP-18-4220_en.htm
On 18 May 2018, the European Union submitted a notification under article 12.5 of the WTO Safeguard Agreement of proposed suspension of concessions and other obligations stipulated in said agreement. The proposed suspension follows the imposition of tariffs on imports of certain steel and aluminium goods by the United States on 23 March 2018, see related state acts.
As the European Union does not view the measures imposed by the United States for reasons of national security, rather that these are safeguard measures, the Union reserves the right to impose additional duties. As such, the proposed suspension will commence from 20 June 2018. Following the suspension of concessions and other obligations, the European Union imposed import tariffs on a number of goods from the United States, see related intervention.
Notably, five other countries also notified the WTO of suspending concessions and other obligations in reaction to the imposition of steel and aluminium duties by the United States, see related state acts.
On 21 June 2018, the European Union issued Commission Implementing Regulation (EU) 2018/886 of 20 June 2018 imposing additional duties of 25% or 10% on imports of 182 goods from the United States. The duty is imposed from the day following the publication of said Regulation, i.e. 22 June 2018. The duty is in force until the United States terminates the safeguard duties imposed on imports of certain steel and aluminium goods from the European Union, see related state acts. In May 2018, the EU notified the WTO of the suspension of concessions and other obligations stipulated in WTO Safeguard Agreement, see related intervention.
The duties are imposed as "rebalancing measures in reaction to US steel and aluminium tariffs". The Commission estimates that EU exports of steel and aluminium affected by US safeguard measures have a total worth of EUR 6.4 billion (USD 7.5 billion). The duties imposed in June 2018 represents a rebalancing worth of EUR 2.8 billion (USD 3.28 billion) in US exports. The rebalancing measures covering remaining value of EUR 3.6 billion (USD 4.22 billion) is to be implemented on 1 June 2021 or from the 5th day following the adoption by the WTO Dispute Settlement Body ruling "that the United States' safeguard measures are inconsistent with the relevant provisions of the WTO Agreement", whichever is earlier.
Notably, a number of other countries also imposed retaliation measures in the form of duties in reaction to the imposition of steel and aluminium duties by the United States, see related state acts.