Brazilian government representatives have commenced discussions with the US over the existing steel quotas imposed on US imports of Brazilian steel.
Brazil is reportedly engaged with discussions with the US Trade Representative (USTR), a media report from Valor said.
A Brazilian official said Brazil has intensified conversations, “reminding the US that (Brazil) is an important partner in the steel sector, due to strong ties and complementarity between the productive chains of both countries.”
Brazil exports about $2.3 billion of steel to the US each year, out of which 85 percent if made up of semi-finished steel products, which are used by US steelmakers to produce their final product. The exports are subject to quarterly tonnage quotas, and anything above the quota is subject to 25 percent Section 232 tariffs. Brazil and the US adopted the quota alternative after Section 232 tariffs were implemented in 2018.
Brazil expects recent tariff-rate quota agreements the US inked with the European Union and Japan might help it negotiate better terms with the existing quota system.