The United Kingdom (‘UK’) notes the announced partial removal of US Section 232 tariffs on steel and aluminum, and full removal of Section 232 tariffs on derivative articles. Although this is a step in the right direction, the UK still considers these tariffs incompatible with the rules of the World Trade Organization.
Further to the US partial removal of Section 232 tariffs on UK exports, the UK will suspend additional tariffs on US goods in response to Section 232 action. The UK will keep the suspension under review in the light of new developments, for example developments that could worsen the situation for UK exporters to US Section 232 steel and aluminum measures *.
The UK recalls that on 30 June 2021 its steel protection measure was extended. The UK will continue to defend its violent steel industry and will, if appropriate, continue to impose its steel safety measure, even during any period after the expiry of the current safeguard measure, if necessary to prevent or remedy serious injury.
The UK reiterates its commitment to the continued robust application of trade sanctions, where necessary, to prevent and eliminate injuries caused by unfair trade practices or serious injuries due to unexpected flooding of imports as a result of global excess capacity or otherwise. To this end, the UK has established a robust and efficient trade trading system that is in line with international best practice and consistent with the rules of the World Trade Organization.
Where the ownership or control of a British steel manufacturing company changes after 22 March 2022, the UK will review foreign acquisitions in accordance with its domestic law and policy, as appropriate, and in particular it will consider its powers under National Security and Investment Perform act. 2021
In addition, all UK-based steel manufacturing companies, regardless of ownership, are subject to all relevant aspects of UK law. This includes:
ech. Competition law;
ii. Subsidies control law;
iii. Immigration law;
iv. Labor law;
v. Health and safety at work law;
vi. Corporate Governance Law.
* UK steel exporters are currently subject to US 232 steel measures, as well as US 232 steel derivative measures as identified in i) US Presidential Proclamation 9705 of 8 March 2018; ii) U.S. Presidential Proclamation 9704 of March 8, 2018; iii) US Presidential “Proclamation 9980 of January 24, 2020”.
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