The Brazilian Ministry of Industry, Foreign Trade and Services (Mdic) has confirmed the imposition of a quotas system for steel exports to the US. This is to avoid Section 232 tariffs, Kallanish learns from a ministry note.
“The restrictive measures are a sole responsibility of the US and shall be managed by their administration. The Brazilian Government, in contact with the steel sector, will closely monitor its impact on Brazilian exports”, says Mdic. Brazilian authorities continue working to find solutions that better meet the needs of steel and aluminium sectors, with bilateral and multilateral agreements, the ministry confirms.
According to the new US import system, Brazilian steel exports will be subject to quotas, based on the average of the last three years (2015-2017). The quota for semi-finished steel will be 100% of the average, and for steel finished products the quota will be 70% of the average, Mdic says.
A similar quota system has been negotiated by Argentina, although in that case the system did not reduce overall the average volumes exported from Argentina to the US.