Following the US government’s imposed tariffs on steel and aluminium, Cepi has called on the European Commission to continue negotiations, citing the potential for future tariffs including pulp and paper and aiming to avoid supply chain disruptions.
Cepi is currently taking part in a consultation launched by the European Commission on the list of American products targeted by European retaliation measures, representing the European pulp and paper industry. The list of products presented is open to consultation by industry representatives until 26 March.
Apparently, the list will then be submitted to EU member states for approval, with the Commission aiming for entry into force in mid-April. Cepi advocates for a ‘negotiation first’ approach, but states that if negotiations fail and US tariffs on EU exports of pulp, paper or board would be imposed, it makes several requests of the Commission.
It asks the Commission to respond ‘quickly, vigorously and in a proportionate manner’ with EU restrictions on imports of US goods and services; however, it adds that if US tariffs do not cover EU pulp, paper and board products, such EU retaliation should similarly exclude US pulp, paper and board products.
The confederation asks the Commission to exclude from such EU retaliation list products that risk being in short supply in the EU and to monitor and address possible trade flows from third countries that may flood the EU market because of US tariffs, including by means of using EU trade defence instruments to protect the EU industry.
According to Cepi, the EU imports around 900,000 tonnes of pulp per year from the US and close to 600,000 tonnes of paper and board, while the EU exports about 1600,000 tonnes of paper and board to the US and around 350,000 tonnes of pulp. It states that since a multilateral agreement of all major pulp and paper producers in January 2004, there have been no import tariffs on both sides of the Atlantic.
On March 12th, the United States placed 25% tariffs on imports of steel, aluminium, and products containing such metals, and the European Commission responded by re-enforcing suspended counter-tariffs and introducing new countermeasures to the ‘unjustified’ restrictions. This reversed the Biden-Harris Administration’s previous agreement with US trade partners to enable duty-free metal imports in certain quantities.
Smurfit WestRock CEO Tony Smurfit recently described Donald Trump’s import tariffs as ‘economic suicide for America’ and discussed their potentially ‘damaging’ impact on the paper packaging trade and Ireland’s economic relations with the US. He noted the ‘direct effects’ of Trump’s tariffs on Smurfit WestRock’s trade between America and Mexico, as well as its Canadian mill, which reportedly employs between 3,000 and 4,000 workers.
The European Commission announced The Steel and Metals Action Plan today, addressing issues including closing loopholes in the Carbon Border Adjustment Mechanism, extending its scope to downstream products and proposing a post-safeguard trade regime addressing the spill-over effects of global steel excess capacity on the EU market. The plan also addresses strengthening the EU’s trade defence tools to counter foreign subsidies and dumping; recognizes steel scrap as a strategic secondary raw material and emphasizes its role for circularity in the EU; and aims to stimulate investment in decarbonisation by creating lead markets for low-carbon products.
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