US proposes global green steel club that would impose tariffs on China

A concept paper sent to the European Union suggests a new trade approach to tax metal made with higher carbon emissions in countries like China .

WASHINGTON — The Biden administration on Wednesday sent a proposal to the European Union suggesting the creation of an international consortium that would promote trade in metals produced with less waste. emissions, while imposing tariffs on steel and aluminum from China and elsewhere, according to a copy viewed by The New York Times.

The document, a concept paper authored by the Office of the U.S. Trade Representative, provides the first concrete look at a new type of trade deal that the Biden administration sees as a cornerstone of its approach to trade policy.

The group The proposed agreement, known as the Global Agreement on Sustainable Development Steel and Aluminum, would wield the power of U.S. and European markets to try to support domestic industries in a way that also mitigates climate change. To do this, member countries would jointly impose a series of tariffs on metals produced in ways harmful to the environment.

The levies would target China and other countries that have not joined the group. Countries that join would benefit from more favorable trade terms with each other, particularly for cleaner-produced steel and aluminum.

To join the arrangement , countries should ensure that their steel and aluminum industries met certain emission standards, according to the document. Governments should also pledge not to overproduce steel and aluminum, which have depressed global metal prices, and to limit the activity of state-owned enterprises, which are often used to channel subsidies to foreign metal manufacturers. Although the concept paper does not mention China, these requirements seem likely to prevent it from becoming a member.

The United States and the European Union have discussed climate change. related trade agreement for the steel and aluminum industries since last year. No US trade deal has ever included specific carbon emissions targets, and negotiators have had a long way to go in trying to reconcile the differences between the US and the EU. economic approaches to mitigating climate change.

It is unclear what kind of reception the proposal, which is still in its early stages, will receive from European leaders, as well as whether US industry and politicians will support the idea. An E.U. official declined to comment on details of an active negotiation on Wednesday, but said the two sides were discussing ways to continue and deepen their work on the arrangement.

In recent weeks, trade tensions between the United States and Europe have reached their highest level since President Biden took office, with leaders clashing over U.S. legislation aimed at encouraging trade. production of electric vehicles in North America. EU leaders say the measures will disadvantage their industries and have demanded changes they say unfairly exclude European businesses.

A senior trade official, who is expressed on condition of anonymity because the document was not yet public, said the row over electric vehicles was unlikely to spill over into the steel and aluminum negotiations, and that governments were closely aligned on the goal of taking carbon intensity into account when it came to trade.

After a meeting with European officials outside Washington this week, U.S. Trade Representative Katherine Tai called the effort on steel and the aluminum of "one of the most important things we have" we work between the US and the EU. with respect to trade. She said he was "on track" to meet a previous goal of completion by next year.

"It's a important part of our track record, Washington for Brussels, in terms of solving some of the most difficult issues of our time, some of the things that have been really difficult between us, and demonstrating...