Commenting on the announcement that the United Kingdom and the United States will commence formal talks to resolve the dispute over Section 232 tariffs on steel, UK Steel Director General Gareth Stace said:
“UK Steel warmly welcomes the news that the US and UK governments are now entering talks to end this trade dispute and remove the 25% tariffs levied on UK steel exports to the US, our second largest export market. With the recent removal of US tariffs on EU produced steel, UK producers currently face a 25% price disadvantage compared to their EU competitors. That a few weeks into 2022 a resolution appears to be in sight is hugely welcome news to the steel sector and steelworkers across the UK.
“Given the competitive disadvantage created by the EU deal, it is vital that these talks are concluded swiftly to limit any additional damage to UK producers. The tariffs have already reduced UK exports to the US by nearly 50%. Importantly, we hope the UK Government can put its new independent trade powers to full use, building on the terms of the EU’s deal and delivering the best possible outcome for UK producers.
“As such, we hope that the US and UK negotiators work together in a spirit of cooperation to deliver a deal and remove these unnecessary barriers to trade. A good deal is in everyone’s interests, not least US and UK consumers. Once again, we congratulate both the US and UK governments on this announcement, and we look forward to seeing our steelmakers back on a level playing field in this important market.”
ENDS
Notes:
About UK Steel: UK Steel is the trade association for the UK steel industry. It represents all the country’s steelmakers and most of downstream steel processors.
UK Steel Policy Priorities: A copy of UK Steel’s current policy priorities as well as key facts and figures about the steel sector can be found here: https://www.makeuk.org/insights/publications/uk-steel-laying-the-foundations-of-a-sustainable-steel-sector
UK steel in numbers:
- Produces 7 million tonnes of crude steel a year, around 70% of the UK’s annual requirement (annual demand of 10.2MT used rather than 2020 figure)
- Employs 33,700 people directly in the UK and supports a further 42,000 in supply chains
- The median steel sector salary is £34,299, 33% higher than the UK national median and 45% higher than the regional median in Wales, and Yorkshire & Humberside where its jobs are concentrated
- Makes a £2.1 billion direct contribution to UK GDP and supports a further £2.7 billion
- Makes a £1.7 billion direct contribution to the UK’s balance of trade
- 96% of steel used in construction and infrastructure in the UK is recovered and recycled to be used again and again
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