The vote in the US Senate simply recognizes that the USA is a signatory to the Government Procurement Agreement (GPA), a plurilateral agreement at the WTO, and as such it has an obligation to keep its government procurement programmes open to the other signatories.
“Unfortunately the Senate’s vote does not go further and overturn the Buy American clause. Only that would have prevented the risk of trade diversion from the US market to Europe from countries which are not signatories of the GPA – such as China, India, Russia, the Ukraine and Turkey. That risk remains”, EUROFER Director General Gordon Moffat said.
He added that “the bill represents a beggar thy neighbour policy and goes directly against the political engagement of the G20 to refrain from raising new barriers to trade. It is a protectionist measure. It sends the wrong message to the world exactly at the time that everyone should be working to keep markets open.”
In a letter to Trade Commissioner Ashton earlier this week, EUROFER has asked the Commission to strongly oppose to the adoption of the Buy America steel clause and to prepare all necessary actions including referral to the WTO to overturn the measures should it be introduced.
Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of over EUR 160 billion and direct employment of 430 thousand people, producing over 200 million tons of steel per year.
Contact
Gordon Moffat, Director General +32 2 738 79 26 (g.moffat@eurofer.be)
Axel Eggert, Director Public Affairs +32 2 738 79 34 (a.eggert@eurofer.be)