Tillis, Young call on USTR to prevent ‘onerous restrictions’ on steel trade

Adoption of the European Commission’s (EC) proposed restrictions on the trade of steel scrap should be prevented because they would negatively impact American steel producers, according to U.S. Sens. Thom Tillis (R-NC) and Todd Young (R-IN).

The EC’s proposal — which aims to limit countries from shipping trash abroad — would amend waste shipment regulations to restrict European Union (EU) exports of steel scrap to both member and non-member countries of the Organization for Economic Cooperation and Development, the senators wrote in a Feb. 28 letter sent to U.S. Trade Representative (USTR) Ambassador Katherine Tai that was also signed by U.S. Sen. Joe Manchin (D-WV).

However, while the proposal ostensibly seeks to further environmental goals, it fails to meaningfully distinguish between problematic (e.g., plastics) and non-problematic (e.g., steel scrap) waste, according to the senators, who also noted that because steel scrap is not a problematic waste, it should be excluded entirely from the EC’s measures. 

“The EC proposal would also establish burdensome monitoring and reporting requirements for scrap exports,” wrote Sen. Tillis, Sen. Young, and their colleague. “Such measures would distort global scrap markets and steel supply chains, increasing costs and reducing the supply of scrap for American steel producers.”

The senators also don’t think there is environmental rationale for the EC’s proposed restrictions on steel scrap, according to their letter. “In fact, by distorting global scrap flows, the proposal would likely lead to higher global greenhouse gas emissions,” they wrote.

The lawmakers urged the USTR to engage with the EU to ensure that the “onerous restrictions” are not adopted. 

“Alternatively, the restrictions should be lessened, a sufficient transition period adopted, and a self-certification mechanism established based on an international standard,” they wrote.