EC Negotiators Accept 2 1/2-Year Pact on Steel
European Community negotiators have agreed to a compromise with the United States over limits on community steel exports, an EC spokesman said today.
The EC initially opposed Washington’s demand to extend a so-called voluntary restraint agreement (VRA) that expired at the end of September, arguing that it is time the United States did its bit to liberalize steel trade.
But it opted for a pragmatic approach, capitalizing on a new willingness to defuse potential rows in Washington.
“We never wanted the deal, but if we were going to have to have one, a 2 1/2-year deal is a credible step to liberalizing the steel market,” the spokesman told reporters.
The United States had originally wanted a five-year pact to shield its aging steel producers and give them more time to adjust to foreign competition.
Under the new deal, the community gets a small boost in its market share, 7% instead of the 6.68% in the previous accord.
The accord also spells out that any disputes have to be settled by mutual consent, not by unilateral action from Washington.
Washington imposed VRAs to cut the market share of imports from 30% five years ago to 20.2%.
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