U.S., EU agree to end tariff dispute
On Oct. 30, the United States and the European Union reached an agreement that would end a Section 232 tariff dispute that began as trade conflict over steel and aluminum and resulted in the EU levying retaliatory tariffs on imports of numerous U.S. goods, including corn, orange juice, butter, cheese, pork, nuts and others. The agreement was reached during the Group of 20 (G20) Summit in Rome, Italy.
“The agreement between the United States and the European Union is welcome news for America’s farmers,” said American Farm Bureau Federation President Zippy Duvall. “It’s crucial that we now restore those trade relationships. As we continue to recover from the impact of the global pandemic, America’s farmers need the stability and predictability of strong trade agreements to grow exports and provide healthy, affordable food to our international neighbors.”
The European Union (EU) has removed retaliatory duties on certain U.S. products as a part of a U.S.-EU deal that converts the tariffs imposed on EU steel and aluminum imports to a tariff-rate quota. The EU retaliatory tariffs included 25% duties on imports of U.S. corn.
“We’ve reached an agreement with the EU which maintains the 232 tariffs but allows limited volumes of EU steel and aluminum to enter the U.S. tariff-free,” said U.S. Commerce Secretary Gina Raimondo. “It was a very successful negotiation and we agreed on a way forward for how to face our shared challenge which is global excess capacity mainly by China.”
“This is an important step for America’s corn farmers and a step toward restoring our trading relationship with the European Union,” said National Corn Growers Association President Chris Edgington in a written statement. “We were dragged into a trade dispute that did not involve us, and we are highly appreciative of the Biden administration for this development.”