US Commerce chief says green steel pact would disadvantage China

US Commerce Secretary Gina Raimondo said on Tuesday (May 16) that the Biden administration was “extremely focused” on reaching a “green steel” arrangement with the European Union and other partners that disadvantages carbon-intensive steel from China and other countries.

Raimondo told an American Iron and Steel Institute conference in Washington that she was fully committed to ensuring that “Section 232” tariffs on global steel and aluminium imports protect US steelmakers and US national security interests.

Raimondo said that a green steel arrangement being negotiated by US Trade Representative Katherine Tai will be a “game changer” for the industry’s efforts to deal with Chinese excess steel manufacturing capacity. The negotiations are aimed at erecting trade barriers to steel produced with higher carbon emissions.

US steelmakers are among the world’s lowest carbon emitters, because of their heavy reliance on electric-arc furnaces that make steel largely from scrap, as opposed to smelting iron ore in coal-fired blast furnaces.

“China doesn’t have the clean steel. We’re pushing our industry to have higher environmental standards and cleaner steel, as is Europe,” Raimondo said.

“We need a global steel arrangement that preferences higher quality, green steel and aluminium. That’s the right way to disadvantage China in a way that lifts everything.”

Raimondo declined to say whether she thought it was realistic to meet a October deadline for reaching a deal, referring such questions to Tai’s office.

Raimondo said it was important for Commerce to maintain a strong trade anti-dumping and anti-subsidy enforcement capacity and criticised Republican proposed cutbacks in discretionary spending to 2022 levels, which she said would result in “hundreds” fewer enforcement staff.

“We need every bit of enforcement capacity that we have and then some,” Raimondo said. “So part of it is on us to be aggressive, vigilant and disciplined in our enforcement.” REUTERS