The United States has announced the extension of its suspension of duties on Ukrainian steel for an additional year, signaling ongoing support for trade relations between the two countries amidst geopolitical complexities. Despite this extension, the quantity of Ukrainian steel imported to the United States remains relatively modest, constituting less than 1% of the total steel imports to the nation in the year 2023. This figure reflects a decline from previous years, with imports decreasing in comparison to 2022 and persistently remaining below the average import volume observed in 2021.
Yulia Svyrydenko, serving as the First Vice Prime Minister and Minister of Economy of Ukraine, took to Twitter to underline the importance of the US decision. In her remarks, she emphasized that the extension encompasses the suspension of tariffs on steel products originating from Ukraine but undergoing further processing within the member states of the European Union. Svyrydenko underscored the significant challenges confronting Ukraine’s steel industry following the invasion by Russia, which include the substantial loss of production capacity due to systematic shelling and destruction, as well as intricate logistical hurdles in exporting goods. Consequently, the decision by the United States is perceived as a meaningful step towards facilitating the recovery of the Ukrainian steel sector.
The initial suspension of duties on Ukrainian steel was implemented in May 2022, a few months after the onset of the full-scale Russian invasion of Ukraine. This suspension was subsequently extended in May 2023. Moreover, in the past year, President Biden expanded the decree to exempt duties on European Union products manufactured from steel originating in Ukraine. Nonetheless, the facilitation of duty-free circulation necessitates the provision of certification confirming the Ukrainian origin of steel products processed within a member state of the European Union.
In parallel developments, reports by GMK Center have indicated a notable decrease in steel imports, including both rolled and semi-finished products, to the United States in the year 2023, in comparison to the preceding year. The total import volume amounted to 28.15 million tons, reflecting an 8.7% reduction. This decline can be attributed to a confluence of factors, encompassing high import tariffs, augmented domestic production, diminished demand for steel amid prevailing economic challenges, and geopolitical considerations such as sanctions imposed on select exporting nations.
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